All categories

3 years ago

Explain the difference between implicit and explicit costs

1 answer:

5 0

Explicit costs are reported in business documents. They are also known as direct costs. Explicit costs result in tangible assets for the company. Some examples are: rent, wages, maintenance. Explicit costs are easier to identify and account for because they leave a paper trail.

Implicit costs can be described as opportunity costs. Implicit costs deal with intangibles and do not leave a paper record. Implicit costs can be time or wasted opportunities, for example. An implicit cost is simply the loss of a possible benefit or asset that didn't occur.

You might be interested in

Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid

Genrish500 [490]

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

3 0

3 years ago

g Dybala Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales S

Marianna [84]

Answer:

Effect on income= $2,500 increase

Explanation:

Giving the following information:

Contribution margin= $44

The marketing manager believes that a $6,300 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales.

To calculate the effect on income, we need to use the following formula:

Effect on income= increase in total contribution margin - increase in fixed costs

Effect on income= 200*44 - 6,300

Effect on income= $2,500 increase

5 0

3 years ago

Which stage of economic development is a time of change from the traditional way of doings things in a society to moving toward

DIA [1.3K]

Answer:

takeoff

Explanation:

Is the third stageof economic development in which rapid economic growth occurs, theeconomy diversifies from few industries to several industries.

5 0

3 years ago

Read 2 more answers

Janis parker is in charge of marketing for a department store sale. during previous sales, she has had success using only radio

NikAS [45]

Answer:

Past success

Explanation:

During previous sales, Janis had success using only radio advertisements to draw customers into the store for a sale. When her colleague suggests tv commercials as another approach to marketing, she was resistant to change because of her past success with radio advertisements.

8 0

3 years ago

Following are Nintendo’s revenue and expense accounts for a recent March 31 fiscal year-end (yen in millions). (Enter answers in

Gnom [1K]

Answer:

Dr. Net Sales ¥ 1,888,622

Cr. Income Summary ¥ 1,888,622

Dr. Income Summary ¥1,770,833

Cr. Cost of sales ¥ 1,254,981

Cr. Advertising expense ¥ 118,308

Cr. Other expense ¥ 397,544

Explanation:

Closing Entries are passed to close the temporary accounts of a business for the year. These accounts are closed and their balances are transferred to income summary account.

First we will close the the revenue / income accounts and then expenses or cost accounts.

4 0

3 years ago