Answer:
The correct option is D,economic costs are generally higher than accounting costs because economic costs include all opportunity costs, while accounting costs include explicit costs only.
Explanation:
Economic costs are usually higher because economic costs comprises of both implicit and explicit costs whereas accounting profit calculation only consider the explicit costs.
Explicit costs are the costs that require actual cash flows from the business such as the payment of rent,salaries and many more.
However,implicit costs are not real costs in actual term,they are costs of forgone benefits such as the salaries the business owner if he takes employment elsewhere.
Answer:
$27,200
Explanation:
Data provided in the question:
Purchasing cost = $147,000
Freight charges = $4,000
Foundation and installation charges = $19,000
Salvage value = $34,000
Useful life = 5 years
Now,
Total cost of the equipment
= Purchasing cost + Freight charges + Foundation and installation charges
= $147,000 + $4,000 + $19,000
= $170,000
using the straight line method of depreciation,
we have
Annual depreciation = [ Cost - Salvage value ] ÷ Useful life
= [ $170,000 - $34,000 ] ÷ 5
= $27,200
Answer:
Transaction cost
Explanation:
Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.
So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement
Therefore it represents the transaction cost
Answer:
B) He could not correct the software problem in the screening test and was not selected for the position.
Explanation:
Procedural fairness in a job selection process refers not to the outcome of the process, instead it refers to the procedures used by the people conducting the process. In order for Roberto to belief that the procedural process was fair, he must belief that the outcome of the process was fair.
Since we assume that Roberto is a rational person, if he wasn't able to perform the required tasks or tests given to him, he should agree that he wasn't fit for the job. Or maybe he was fit but got too nervous and just messed up.