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3 years ago

Which of the following terms is correct?

Business

1 answer:

slega [8]3 years ago

3 0

Answer:

a. Economic profit takes into account all costs involved in producing a product.

Explanation:

Numeral A is the only correct option in the question.

Economic profit takes into account all costs: explicit costs and implicit costs. Explicit costs are the monetary costs that we incurr when we run a business, such as wages, rent, and utilities.

Implicit costs are the opportunity costs that we incurr, in other words, what we gave up to run the business. For example, if you had a job, and quit to set up the business, your implic cost is the salary that you used to earn.

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A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vaca

luda_lava [24]

Answer:

Value $ 256,250

rounding against nearest 1,000 dollar: 256,000

Explanation:

From the gross income we subtract the expenses and vanacy losses.

40,000 gross income - 3,500 vacancy - 16,000 operating expense

20,500 net

Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%

$ 20,500 / 0.08 = $ 256,250

6 0

3 years ago

Read 2 more answers

__________________ represents the total benefits offered to consumers through a channel of distribut

bezimeni [28]

A retail value chain represents the total benefits offered to consumers through a channel of distribution

7 0

3 years ago

Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year. At the end of th

FromTheMoon [43]

Answer: 4%

Explanation:

From the question, we are informed that Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year and that at the end of the year, retiree benefits paid by the trustee were $28 million and cash invested in the pension fund was $32 million.

Based on the above scenario, the percentage rate of return on plan assets goes thus:

Opening balance of plan assets 1200

Add:- Actual return = 48

Add:- contributions = 32

Less :- retiree benefits = -28

Closing balance of plan assets = 1252

It should be noted that the actual return is the balancing figure which is calculated as:

= 1252 + 28 - 1200 - 32

= 48

The percentage rate of return on plan assets will now be:

= 48/1200

=0.04

= 4%

4 0

3 years ago

E2-6 Investment Income LO 2-2, 2-3 What net income would Ravine Corporation have reported for each of the years, assuming Ravine

zheka24 [161]

Answer: investment Income

Explanation: By Carrying the Investment at fair Value or by using equity method would ensure that the investment income is spread adequately across the Corporation over the years be it two years or three years. This would also help the corporation to make proper planning around their budget and finances as regards to units in the corporation.

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3 years ago

Economic policies that attempt to benefit the poor by taxing and spending are referred to as ________.

anygoal [31]

Answer:

Fiscal policy

Explanation:

Describes changes to government spending and revenue behavior in an effort to influence the economy. By adjusting its level of spending and tax revenue, the government can affect economic outcomes by either increasing or decreasing economic activity.

3 0

2 years ago