To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. Winston's implicit costs $64,000
<h3>What is implicit costs?</h3>
Any expense that has already happened but isn't always shown or reported as a separate charge is considered an implicit cost. It stands for an opportunity cost that develops when a business commits internal resources to a project without receiving any direct payment in exchange.
For instance, losing out on sales and commissions while training a new employee takes up a day. This opportunity cost, often known as the commission and other pay, is a cost to the employee or trainer.
Explicit costs are distinguished from implicit costs by economists. Out-of-pocket costs including those for labour, supplies, and rent are considered explicit costs, also known as accounting costs. Implicit costs are expenses a company faces without making a direct financial commitment.
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Answer:
Option (a) is correct.
Explanation:
Depreciation in 2017:
= $1,750
Accumulated Depreciation = $29,400 + Depreciation in 2017
= $29,400 + $1,750
= $31,150
Book value on date of sale = Original cost - Accumulated Depreciation
= 50,000 - 31,150
= 18,850
Loss on sale = Book value on date of sale - Sales price
= 18,850 - 18,000
= $850 (Loss)
Answer:
Variable, $85; absorption, $105.
Explanation:
Variable costing $85
Absorption costing $105=(85+20)
Answer:
The correct answer is letter "B": a shift to the right of the supply curve for A.
Explanation:
According to the supply law, when the quantity supplied of a good increase, so will the price for that good. This will also cause that the supply curve shifts to the right. Then, technological improvements are likely to boost production which implies manufacturing more products, thus, increasing supply.
So, <em>the introduction of technologies in the production of good A will shift the supply curve of A rightwards.</em>
Answer:
A
Explanation:
An investment of $40,000 to generate 2,000 conversions and a CPA of $20 will help Molly with her marketing goal to generate more sales than other investment plan
