Answer:
the best description for the concept of erosion is option A) The cash flows of a new product that come at the expense of a firm's existing cash flow.
Explanation:
Erosion in accounting explains the activities that impacts negatively on a company's asset or funds.
When erosion occurs and asset is lost, the net worth of the company reduces.
Erosion could reduce profits, sales, or tangible assets, such as manufacturing equipment and sometimes all of a sudden due to technological innovation.
When the cash flows of a new product come at the expense of a firm's existing cash flow, erosion will occur.
Answer and Explanation:
Answer and Explanation:
From the question;
MRTs of capital labor > r/w
Therefore MPK/MPL > r/w
MPL/w> MPK/r
The manufacturer earns more from the marginal capital than from labor so she should use more capital less labor to minimize production costs.
Answer:
are leading indicators of a company's future financial performance and business prospects.
Explanation:
Various sorts of purposes, particularly financial objectives, are created by company owners to provide them with a strong strategy for following the path of comprising a cumulative Increased income, increased profit margins, retrenchment in times of adversity, and gaining good return on the investment are all key business company objectives.
When Katie decides to take $25,000 in December (the normal payable date) and to defer the residual for 15 years when she plans to retire. "She does not violate the economic benefit rule with the decision."
<h3>What is Economic Benefit Rule?</h3>
It is a principle of taxation that affects taxpayers with cash basis who are paid for their services.
According to its provisions, a taxpayer is subject to taxation if they derive a "economic benefit" from an unqualified right to acquire property in the future.
Some examples of economic benefit rule are-
- net income and revenues,
- profit and net cash flow,
- a decrease in anything, such a cost,
- cheaper labour or raw material costs.
Thus, the benefit a person receives from paying less for a good than the utmost price they are willing to pay for it is known as the net economic benefit.
To know more about the principle of taxation, here
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Answer
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Step-by-step explanation:
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