A negative externality or spillover cost occurs when the total cost of producing a good exceeds the costs borne by the producer.
- Spillover costs, commonly referred to as "negative externalities," are losses or harm that a market transaction results in for a third party. Even though they were not involved in making the initial decision, the third party ultimately pays for the transaction in some way, according to Fundamental Finance.
- An incident in one country can have a knock-on effect on the economy of another, frequently one that is more dependent on it, known as the spillover effect.
- Externalities are the names for these advantages and costs of spillover. When a cost spills over, it has a negative externality. When a benefit multiplies, a positive externality happens. Therefore, externalities happen when a transaction's costs or benefits are shared by parties other than the producer or the consumer.
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Answer:
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On behalf of a client, you enter an order to write 5 ABC Jan 30 puts. this order is Opening to sell.
A customer is a person who purchases products or services from a company, and a customer refers to a specific type of customer who purchases professional services from a company. In general, customers buy products and customers buy advice and solutions.
A client is someone who buys goods or pays for services. Businesses and other organizations can also be customers. Unlike Customers, Customers typically have a contract or relationship with a Seller. For example, when you buy coffee at a station cafe, you are the customer.
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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales price $ 8.90 per unit Variable manufacturing cost $ 3.60 per unit Fixed manufacturing cost $ 2,500 total Fixed selling and administrative cost $ 1,000 total Finch planned to produce and sell 3,000 units. Actual production and sales amounted to 3,200 units.
1) Contribution format income statement:
Sales= 8,900
Variable costs= 3,600
Contribution margin= 5,300
Fixed MOH= 2,500
Fixed selling and administrative= 1,000
Net operating income= 1,800
2) Flexible budget
Sales= 26,700
Variable costs= 10,800
Contribution margin= 15,900
Fixed costs= 3,500
Net operating income= 12,400
