Answer:
Accounting Cost : Explicit paid costs
Economic Costs : Implicit , Opportunity Cost based, unpaid costs
Explanation:
Accounting Cost of production involves only explicit costs of production. Economic Cost of production involve both explicit & implicit costs of production, including the opportunity costs of factor services.
Explicit cost of production is the factor cost paid to other party, for which money exchange takes place. Implicit cost of production is the imputed cost of self owned factor services, for which no monetary exchange (payment) with other party take place.
Eg : Salary paid to staff, rent of business rented property is an Accounting Cost. Self imputed salary of entrepreneur , interest of self financed capital are imputed costs.
Answer:
$1,197.94
Explanation:
For determining the current dollar price we have to applied the present value formula which is to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 5.7% ÷ 2 = 2.85%
NPER = (13 years - 1 years) × 2 = 24 years
PMT = $1,000 × 8% ÷2 = $40
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After applying the above formula, the current dollar price of the bond is $1,197.94
B. To help determine how much inventory to keep in stock of each item in the outlet, I would consider two factors. The first one is the <u>certain amount of each item type </u>in the first week - determining the number of each items input in the stock to be the original data to compare. The second is the <u>number of items sold and still on stock</u>. This would help determine invetory to keep in stock.
B. If I was running a store, I would prefer to use the pick up at store buying method. There would be cashier at the register to check the products and bills as well as receive money from the customers. This is the traditional and still always the most common methods. As the fact that people nowadays still like shopping in physical store, this is definitely the most effective method.
C. The inventory control method I would use when operating a store is to adopt modern technology like bar code to control the inventory stock. By using this technology, I would need to consider the <u>bar code</u> for each type and establishing <u>software</u> to automatically input the information about the number of items sold and in stock. With inputting the number of total items at the beginning and giving each item its corresponding bar code, the sales or number of stock would be tracked by the software.
D. An example of two commodities to be displayed together at store is <u>pencil and rubber</u>. Pencil and rubber undoubtedly are complementary products of each other. Complementary products are made to be used together. Each item requires the other for their complete uses. This is also the case of Rubber and Pencil and each item would not be fully used without the presence of the other.
Answer:
b. 7.70%
Explanation:
The computation of the rate of return is shown below:
= Real risk free rate + inflation rate + maturity risk premium
= 4.20% + 3.10% + 0.40%
= 7.70%
The maturity risk premium is
= 0.10% × 4
= 0.40%
Basically we added the risk free rate, inflation rate and the maturity risk premium so that the rate on return on a treasury security could come
I believe the correct answer is A. The model of aggregate demand and aggregate supply explains the relationship between the price and quantity of a particular good. It is a macroeconomic model explaining the correlation of the price with the output of goods.