Answer:
The correct answer is that Mark's opportunity cost of holding cash is higher
Explanation:
Opportunity cost is nothing but the value of the next best alternative that a person has given up , when that person had the choice of selecting between any number of options. You will not find this cost to be shown in your financial statements or balance sheets but this cost is very important in telling which option is the best to use or more profitable for a person or company.
In this question the reason why Mark uses ATM more frequently is because for him the opportunity cost for him in holding more money in hand is high as compared to the Jim whose opportunity cost of holding more money in hand is less , which means he is not not going to miss out on much of the opportunity. The reason why the opportunity cost is high for Mark is because of high rate of interest in his country , if Mark holds more money in hand then the amount of money he is going to lose on interest that he would have gained by keeping the money in bank will be high which means his opportunity cost of holding money is high.
Answer:
Demand is inelastic
Explanation:
Demand is inelastic, means that the demand of the buyer does not change as the price varies or changes.
For example, the price rises by 15% and the demand falls by 1%, which is said to be that the demand is inelastic.
So, in this case, the boutique hotel, tries to increase the revenue through decreasing the rates through 20%, but the revenues decreases. Therefore, this situation is that the demand of the boutique hotel is inelastic.
Answer:
The correct answer to the following question is option A) Discretionary accruals are items that management has full control over .
Explanation:
Non discretionary accruals can be described as those expenses ( that are obligatory in nature ) which are yet to be realized by the company but such expenses are already recorded in the books of accounts . Examples of such expenses can be like employees next month salaries.
Discretionary accruals can be described as those expenses ( that are non obligatory in nature ) which are yet to be realized by the company but such expenses are already recorded in the books of accounts . Example of such expenses are bonuses for the employees . These are such expenses on which management has full control ,as it not an obligation for a company to incurred such expenses.
I found the correct table and copied its form in an excel file. I also inputted my answers there.
Fixed cost is a fixed amount regardless of the number of units created.
Variable cost is the amount that is directly related to the number of units. As the number of units produced increases, so does the variable cost.
These are the formulas I used in the table I made.
Total Cost = Fixed Cost + Variable Cost
Fixed Cost = Total Cost - Variable Cost
Variable Cost = Total Cost - Fixed Cost
Average Fixed Cost = Fixed Cost / Quantity output
Average Variable Cost = Variable Cost / Quantity output
Average Total Cost = Total Cost / Quantity output OR Ave. Fixed Cost + Ave. Variable Cost.
Marginal Cost = Change in Total Cost / Change in Quantity output