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3 years ago

The term "opportunity cost" is best defined as:

Business

1 answer:

Wittaler [7]3 years ago

8 0

Answer:

4. the benefit associated with a rejected alternative when making a choice.

Explanation:

Opportunity costs refer to the foregone benefit as a result of choosing one option over the another. It is the value of the missed best alternative. For example, with $100, one can either watch a movie or have a meal. If having a meal is chosen, the joy derived from watching the movie is the opportunity cost.

Opportunity cost is occasioned by the scarcity of resources, including time. Individuals and firms have to make economic choices every day. The sacrificed benefit in every decision is the opportunity cost.

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"Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero." Discuss.

ipn [44]

"Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero." : Several factors other than the contractual rate paid to workers can cause a labor rate variance. For example, skilled workers with high hourly rates of pay can be given duties that require little skill and that call for low hourly rates of pay, resulting in an unfavorable rate variance. Or unskilled or untrained workers can be assigned to tasks that should be filled by more skilled workers with higher rates of pay, resulting in a favorable rate variance. Unfavorable rate variances can also arise from overtime work at premium rates. What effect, if any, would be expected poor-quality materials to have on direct labor variances? 10-10. If poor quality materials create produced.

What are labor and example?

The definition of labor is physical or mental work or effort. An example of labor is studying hard for a test. An example of labor is a woman giving birth to a baby. Labor includes both physical and mental work undertaken for some monetary reward. In this way, workers working in factories, the services of doctors, advocates, ministers, officers, and teachers are all included in labor.

Labor represents the human factor in producing the goods and services of an economy. finding enough people with the right skills to meet increasing demand. This often results in rising wages in some industries.

learn more about labor here

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3 0

2 years ago

Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $967,000. Without new projects, bot

kirill115 [55]

Answer and Explanation:

The computation is shown below:

a. Current PE ratio is

For Pacific energy company

= Price ÷ Earnings

= ($967,000 ÷ 0.13) ÷ ($967,000)

= 7.69 times

For U.S Bluechips

= Price ÷ Earnings

= ($967,000 ÷ 0.13) ÷ ($967,000)

= 7.69 times

b. The new PE ratio is

= Price ÷ Earnings

= (($967,000 + $117,000) ÷ 0.13) ÷ ($967,000)

= 8.62 times

c. The new PE ratio is

= Price ÷ Earnings

= (($967,000 + $217,000) ÷ 0.13) ÷ ($967,000)

= 9.42 times

6 0

2 years ago

Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured

kirill [66]

Answer:

C. $3,800

Explanation:

The computation of the cost level for both insurance policy is shown below:

We choose $1,000 or 50% which ever is lower

We take the help of the given options

a. For the first option

The 50% is 300 which is less than the 1,000 now we take 80% of ($600 - $300) that comes $240

b. For the second option

The 50% is 500 which is less than 500 now we take 80% of ($1,000 - $300) that comes $560

c. For the third optiion

The 50% of $3,800 i.e $1,900 and $1,000 whichever is less i.e ($3,800 - $1,000) = $2,800 so it is $1,000 now we take the 80% of ($3,800 - $300) i.e $2,800

Thus the amount comes same

Thus this is the right option

5 0

3 years ago

A firm has forecasted sales of $4,500 in April, $3,000 in May, and $5,000 in June. All sales are on credit. 30% is collected in

8090 [49]

Answer:

$3,500

Explanation:

Calculation to determine What will be the balance in accounts receivable at the end of June

Balance in accounts receivable =June Forecasted sales* (Remaining percentage-Percentage collected)

Let Plug in the formula

Balance in accounts receivable =$5,000*(100%-30%)

Balance in accounts receivable=$5,000*70%

Balance in accounts receivable=$3,500

Therefore the balance in accounts receivable at the end of June will be $3,500

8 0

3 years ago

A machine costs $260,000 to purchase and will provide $60,000 a year in benefits. The company plans to use the machine for 12 ye

MaRussiya [10]

Answer:

$133,828.98

Explanation:

The computation of the net present value is shown below:

Year Cash flows Discount factor Present value

0 $260,000.00 1 $260,000.00 (A)

1 $60,000.00 0.9009009009 $54,054.05

2 $60,000.00 0.8116224332 $48,697.35

3 $60,000.00 0.7311913813 $43,871.48

4 $60,000.00 0.6587309741 $39,523.86

5 $60,000.00 0.5934513281 $35,607.08

6 $60,000.00 0.5346408361 $32,078.45

7 $60,000.00 0.4816584109 $28,899.50

8 $60,000.00 0.4339264963 $26,035.59

9 $60,000.00 0.3909247714 $23,455.49

10 $60,000.00 0.3521844788 $21,131.07

11 $60,000.00 0.3172833142 $19,037.00

12 $75,000.00 0.2858408236 $21,438.06

Total present value $393,828.98 (B)

Net present value $133,828.98 (B - A)

The discount is come from

= 1 ÷ (1 + rate) ^ years

4 0

3 years ago