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4 years ago

To effectively run a business, it is necessary to:

1 answer:

7 0

It is important to understand how money and accounting principles work to effectively run a business. If these concepts are not understood and used correctly, the business will not have a high chance of surviving for a very long time.

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What are three strategies that you can use to make better financial decisions?

leonid [27]

I would say save, invest and start a business

4 0

3 years ago

Read 2 more answers

In 2013, Roma was a schoolteacher and earned $40.000. But she enjoys creating cartoons, so at the beginning of 2014, Roma quit t

Neko [114]

Answer:

a. $56,400

b. 101,750

c. Economic loss of $108,150

Explanation:

Explicit Cost

The direct payments made to other for different purposes s explicit cost. Such as wages, rent etc.

For Roma Explicit costs are

Computer $55,000

Printer lease payment $150

Paper, utilities, & postage $1,250

Total Explicit Cost $56,400

Implicit Cost

Any opportunity cost is the implicit cost. The loss of benefit which someone faces for choosing an alternative.

For Roma Explicit costs are

School Teacher Salary $40.000.

Building rent $55,000

Bank Interest (5% 55,000) $2,750

Computer offer $4,000

Total Implicit cost $101750

Economic Profit

Economic Profit is the net of Revenue / Income less Implicit and Explicit costs associated with the revenue / Income.

Economic Profit / loss = Total Revenues - (Explicit Costs + Implicit Costs)

Economic Profit / loss = $50,000 - ($56,400 + 101,750)

Economic Loss = $108,150

3 0

3 years ago

Mr. and Mrs. Jones had an extensive flood in their basement. They incurred casualty losses of $20,000. Their insurance company r

andreev551 [17]

Answer:

True

Explanation:

According to the IRS tax guidelines in such a case the unreimbursed amount is deductible as an itemized deduction from tax returns.

What this implies for Mr. and Mrs. Jones is that the $12,000 unreimbursed amount would be deducted from their tax return. Thus, reducing the amount of taxes to be paid by them.

4 0

3 years ago

Accrual accounting: A. results in the balance sheet showing the fair value of the entity's assets. B. is designed to match reven

satela [25.4K]

Answer:

The answer is B. is designed to match revenues and expenses.

Explanation:

Accrual Accounting method records revenues and expenses when they are incurred, regardless of when cash is received or paid.

5 0

3 years ago

Amy's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Amy's very tiny kitchen has barely

Mkey [24]

Solution :

Amy can only change the number of workers. As the fixed input cannot be changed in the short run, so in the short run, the workers are the variable inputs and the ovens are the fixed inputs.

a). Marginal Product of labor

No. of workers The Output The Marginal product of labor

0 0 ---

1 60 60

2 100 40

3 130 30

4 150 20

5 160 10

The marginal product of the labor is the change in the quantity i.e pizza as Amy hires an additional worker.

1 worker raise the output to 100, so the marginal product of labor of 1 worker is 100 and so on. The marginal product of the labor = change in the output / change in the number of workers.

b).

No. of workers The Output The Fixed cost The Variable cost Total cost

0 0 20 0 20

1 60 20 30 50

2 100 20 60 80

3 130 20 90 110

4 150 20 120 140

5 160 20 150 170

The fixed cost remains the same but the variable cost increases as one more worker is hired.

The law of the diminishing the marginal product of labor is determined by = total output increases at the decreasing rate as we increase the quantity of the labor.

7 0

3 years ago