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3 years ago

What constitutes an implicit cost to the johnston manufacturing company?

Business

1 answer:

irakobra [83]3 years ago

4 0

Answer:

Interest on self funded capital , Self imputed salary of entrepreneur

Explanation:

Implicit Cost is the cost of business, which includes the imputed value of self owned factor services. No cash monetary exchange takes place for such costs, unlikely Explicit Costs (for which money factor payment is done). The implicit costs include the opportunity cost of all the factor services. It implies the cost of next best alternative of the factor services.

Examples

Interest on self funded capital , as it could have opportunity cost in terms of interest otherwise
Self entrepreneurial, managerial salary ; that reflects the opportunity cost in terms of salary that could be earned otherwise (skills employed somewhere else)

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Corner Jewelers, Inc. recently analyzed the project whose cash flows are shown below. However, before the company decided to acc

andreev551 [17]

Answer:

correct option is a. −$59.03

Explanation:

given data

Old cost of capital (r) 8.00% New cost of capital (r) 11.25%

year 0 1 2 3

cash flow -$1000 $410 $410 $410

solution

we know that here old cost of capital (r) NPV will be

old cost of capital (r) NPV = cash flow 0 year + cash flow × $\frac{1-(1+rate)^{-time}}{rate}$

put here value

old cost of capital (r) NPV = -1000 + 410 × $\frac{1-(1+0.08)^{-3}}{0.08}$

old cost of capital (r) NPV = $56.61

and

new cost of capital (r) NPV will be

new cost of capital (r) NPV = cash flow 0 year + cash flow × $\frac{1-(1+rate)^{-time}}{rate}$

put here value

new cost of capital (r) NPV = -1000 + 410 × $\frac{1-(1+0.1125)^{-3}}{0.1125}$

new cost of capital (r) NPV = -$2.42

so difference is

Difference = -$2.42 - $56.61

Difference = -$59.03

so correct option is a. −$59.03

7 0

3 years ago

The following data refer to Brompton Company’s ending inventory:

Leona [35]

Answer:

Unit cost

Explanation:

They ending inventory

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A(n) _____ gets learners into the appropriate mental state for learning and allows them to understand the personal and work-rela

8_murik_8 [283]

Answer:

concept map

Explanation:

Concept map -

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The method makes all the task very easy and precise .

Hence , from the given information of the question ,

The correct answer is concept map .

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Explanation:

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As the economic condition of the poor becomes better, these poor people inturn becomes customer for these business for other products thus being a huge source of profit.

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3 years ago

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