Answer:
B. accounting profit = economic profit + implicit costs
Explanation:
Implicit cost are the cost that already incurred but is not necessary to report such as opportunity cost. Whereas explicit cost are those expenses which involve the financial transaction and it is being paid.
Accounting profit is calculated by deducting the explicit cost from the revenue as follow.
* Accounting Profit = Revenue - Explicit cost
Economic profit is calculated by deducting both explicit and implicit costs from revenue.
Economic Profit = Revenue - Explicit costs - Implicit cost
So, using Accounting profit formula we conclude that
Economic Profit = (Revenue - Explicit costs) - Implicit cost
Economic Profit = *Accounting profit - Implicit costs
Accounting Profit = Economic profit + implicit cost
Answer:
False
Explanation:
Although separate planning of sales and marketing sectors can be used to ensure the integrity of the assumption about the future they are not developed for this purpose. Both sales and marketing plans are devised for different purposes and they have different roles to play. That is the basic reason they are typically developed separately.
Answer:
TRUE
Explanation:
Now, Given that,
Total budget factory cost = 460000
Budgeted labour hours = 80 000
Actual direct labour hours = 6700
Thus,
Predetermined overhead rate = total budgeted factory cost ÷ budgeted hours
= 460000 ÷ 80000
= 5.75
Therefore,
Having gotten that, we can now calculate for amount of factory overhead which is given as
= Actual direct labour hours × predetermined rate
= 6700 × 5.75
= $38,525
$38525 is equivalent to the values given in the question, thus answer is TRUE.
Answer:
It must sell 1,375 patterns each month in order to attain maximum profit, and that maximum profit is $3,181.25
Explanation:
In order to find the number of patterns that will translate into the maximum profit for the compamy, first we have to consider that the equation given is actually a parabola, and its vertex, when we draw it (Y equals profit and X equals units) proposes the maximum profit possible (if the formula continues to describe the company´s profit).
With that in mind, the general equation of a parabola is as follows.
in our case
a= - 0.002
b= 5.5
c= -600
And the formula, to find the quantity that will provide the maximum profit (x coordinate of the parabola) is as follows.
Therefore
Now, if we want to find what is going to be this maximum profit in terms of dollars, we just have to substitute x for 1,375 in the equation given, that is.
Best of luck.