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3 years ago

An example of an explecit cost of production would be

Business

2 answers:

vfiekz [6]3 years ago

8 0

Answer:

The cost of renting capital equipment like machinery for a business or the salaries paid to workers.

Explanation:

An explicit cost is an expense that is actually incurred by the business, meaning cash outflow. These costs are incurred to ensure that the business continues operating and the cash outflow reduces the cash balances of the business. Examples of such costs are like rental expenses and salary expenses. An implicit cost is the best alternative use of cash by the business that is not taken. An example would be: a business uses its cash to buy inventory instead of investing in fixed income securities. In this case, the implicit cost of using its cash resources is the foregone interest income that could have been earned from the interest bearing securities.

Pavel [41]3 years ago

3 0

An example would be
The Cost of flour for a baker

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Zachary, a manager at ExecuComp, receives quarterly reports, which track his department's production statistics. However, these

makkiz [27]

Answer: measuring actual performance

Explanation: Measuring is the first step in the control cycle. Many employment and tasks can be expressed in concrete and observable terms.

Managers often use a number of information sources to assess actual performance, such as personal observations, statistical reports, oral reports, and written reports.

In the given case, Zachary is using a report that lacks relevance relative to the measurement criteria. Hence from the above we can conclude that the correct option is A.

6 0

3 years ago

Read 2 more answers

If the market risk premium increased to 6%, what would happen to the stock's required rate of return

Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

7 0

3 years ago

Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200

Tomtit [17]

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock Value Expected Rate of return Weightage

A $200 8% $200/$300 = 0.67

B $100 2% $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

3 0

3 years ago

Louise has been a child care provider for one year. She works out of her home and cares for five children. She completed a train

Lerok [7]

Answer: D

Explanation:

6 0

3 years ago

Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 100,000 units of basic, 460,000

statuscvo [17]

Answer:

Bricktan Inc.

The total contribution margin if Bricktan chooses the most profitable sales mix is:

= $22,350,000.

Explanation:

a) Data and Calculations:

Basic Classic Deluxe

Sales units 100,000 460,000 170,000

Limited production capacity = 110,000 hours

Units per hour 10 8 4

Sales mix 10 8 4

Contribution per unit $15 $25 $55

Contribution per hour $150 $200 $220

Total production hours 10,000 57,500 42,500

Total contribution margin $1,500,000 $11,500,000 $9,350,000

Total contribution = $22,350,000

4 0

3 years ago