Answer:
The answer is A.
Explanation:
Opportunity cost is the cost of an action that was not chosen or selected. It is also the cost of alternative forgone. For example, Mr A has two choices - taking employment of $20,000 per annum or being self-employed (setting up a farm that will generate $25,000 per annum). He decides to go for farming. The opportunity cost here is the cost of taking the employment ($20,000).
Opportunity cost is relevant in decision making. Companies use opportunity cost when making strategic or tactical decisions. There must be an alternative to every decision which must be considered before making a decision.
Though opportunity cost is a relevant cost but it is never shown on financial statement. It is never part of financial records.
Answer:
<u>Return on equity (ROE) for Firm A</u> = 11.99%
<u>Return on equity (ROE) for Firm B</u> = 25.33%
Explanation:
Return on equity (ROE) = net income by shareholders' equity
<u>Return on equity (ROE) for Firm A </u>
30,700/256,000 x 100= 11.99%
<u>Return on equity (ROE) for Firm A </u>
115,000/454,000x 100 = 25.33%
Answer:
UberEATS is on a mission to make eating well effortless for everyone, everywhere. Our service connects customers to Uber-speed delivery from restaurants in over 80 cities around the world. We give people more options when choosing how to eat. We help restaurants reach more customers and build their businesses.
When firms compete by offering unique product features rather than competing on price, <u>non-price competition</u> occurs; it is when businesses employ tactics to boost sales and market shares without lowering prices.
What is non-price competition?
In non-price competition, a company "seeks to distinguish its product or service from competing items on the basis of features like design and workmanship," according to a marketing strategy. Because it exists between two or more producers who sell goods and services at the same prices but seek to expand their respective market shares by non-price factors like marketing strategies and higher quality, it frequently happens in imperfectly competitive markets.
Types of Non-Price Competition:
Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution
Learn more about non-price competition here:
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Answer:
when costs are recognized as expenses on the income statement.
Explanation:
The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
The expense recognition principle indicates when costs are recognized as expenses on the income statement.
For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the expense recognition principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.
Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.
