Answer:
3. Correctly ignored a sunk cost
Explanation:
Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.
Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.
In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund. Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.
Answer:
The correct answer is letter "C": occurs when a market activity leads to a negative or a positive externality.
Explanation:
An Economic Externality is a cost or benefit paid or earned by a third party that does not have control over the factors that produced the cost or benefit. The third-party problem arises when whether negative or positive externalities affect individuals who are not involved in market activities.
Answer:
$3.55; $3.13
Explanation:
Calculation to determine what The unit production costs for July are:
Using this formula
Unit product cost = (Beginning work in progress + Cost added) / Number of units
MATERIALS
Unit product cost=($8000+$63,000) / 20,000 units
Unit product cost=$71,000/20,000
Unit product cost=$3.55
CONVERSION
Unit product cost = ($3750+$52500) / 18,000
Unit product cost=$56,250/18,000
Unit product cost=$3.125
Unit product cost=$3.13 (Approximately)
Therefore The unit production costs for July are:$3.55; $3.13
Answer:
Explanation:
The Bottom of the Pyramid strategies focuses on improving widespread poverty while providing profits and growth for multinational companies at the same time. With this definition, it is an ethical business model because it the companies are profiting but at the same time those at the bottom of the pyramid are benefiting, usually from having jobs. It would be unethical if these companies were simply taking from the individuals at the bottom of the pyramid.
Answer:
Option A
Explanation:
Although goodwill is the difference between the consideration transferred by the acquirer to the acquiree it is not the fair value of the identifiable assets acquired rather it is the fair value of the net assets acquired.
The difference is fair value of identifiable assets is the value of the assets at some point of time which is expected to provide some future benefits.
The fair value of the net assets acquired is the total of the fair value of net assets minus liabilities.
