Answer:
The correct option is B
Explanation:
In order to compute the profit, the accountant consider the Explicit cost so,
Explicit Cost = Borrowed amount × Interest rate + Ingredients amount
= $30,000 × 3% + $25,000
= $259,000
Where Revenue is $60,000
Profit = Revenue - Explicit Cost
= $60,000 - $259,000
= $34,100
Economic Profit is computed as:
Economic Profit = Total Profit - Implicit Cost
= $34,100 - $40,600
= - $6,500
where
Implicit Cost = Salary + Interest
= $40,000 + ($20,000 × 3%)
= $40,000 + $600
= $40,600
Therefore, Louis says profit is $34,100 and Greg says she lost $6,500
Answer:
The answer is $41.67
Explanation:
Po = D1/r - g. This formula is called Discount Dividend Model and it is one of the methods used in valuing company's stock.
Po is the present or current value of the stock
D1 is the next year dividend payment
r is the discount rate
g is the growth rate.
Po = $5.00 /0.16 - 0.04
= $5.00/0.12
=$41.67
Therefore, the current stock price is $41.67
The <u>law of increasing relative cost </u>states that the opportunity cost of producing a good always rises as one produces more of it.
According to the law of increasing costs, production eventually loses efficiency as it grows. The labor expenses for each additional item will increase, for instance, if increased production requires overtime work from your workforce.
Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists often refers to opportunity cost. Cost is frequently mentioned in conversations or on the news.
According to the law of increasing opportunity cost, the cost of manufacturing the next unit rises as you keep up with the production of a given good.
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This one would be IRS.
For example, if<span> you end up paying for personal property taxes to your local government, the IRS would allow you to claim a deduction for it on your federal tax return~</span>
The constant planning, monitoring, analysis, and assessment of all requirements that a company requires to accomplish its goals and objectives is known as strategic management. Organizations will have to reevaluate their success methods on a regular basis as a result of changes in the business environment. The strategic management process aids businesses in taking stock of their current condition, developing and implementing management plans, and evaluating their efficacy. There are five fundamental tactics for strategic management, and how they are implemented will vary based on the situation. On-site and mobile platforms both require strategic management.
The benefits of strategic management are typically seen as both financial and non-financial. A key duty of a board of directors is carried out via a strategic management process, which aids a business and its leadership in thinking about and making plans for the future. The organization's and its employees' direction is established by strategic management. Effective strategic management continuously prepares, monitors, and tests an organization's activities in contrast to static strategic plans, increasing operational effectiveness, market share, and profitability.
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