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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.

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Alika [10]

Answer:

B-reserved requirements

Explanation:

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3 years ago

Read 2 more answers

When a policy is surrendered for its cash value,?

ahrayia [7]

The cash surrender value is the sum of money an insurance company pays to the policyholder or annuity holder in the event his policy is voluntarily terminated beforeits maturity or the insured event occurs.

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2 years ago

Crane Corporation acquires a coal mine at a cost of $404,000. Intangible development costs total $101,000. After extraction has

Svet_ta [14]

Answer:

The journal entry to record depletion is :

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

Explanation:

Depletion Expense = Depletion rate × units extracted during the year

where,

Depletion rate = (Cost - Salvage Value) ÷ Estimated total units

Therefore,

Depletion rate = ($404,000 + $101,000 + $80,800 - $161,600) ÷ 4,040 tons

= $ 105 per ton

Therefore,

Depletion Expense = $ 105 per ton × 707 tons

= $74,235

Journal Entry :

Debit : Depletion Expense $74,235

Credit : Accumulated Depletion $74,235

8 0

2 years ago

A company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per un

harina [27]

Answer:

Cost of goods sold= $133

Explanation:

Giving the following information:

A company uses a periodic inventory system. On August 1, the company had 6 items of beginning inventory with a cost of $7 per unit. On August 3, the company purchased 16 units at $14 per unit. Then, on August 5, the company sold 12 units. The 12 units sold consisted of 7 units from the August 3rd purchase and 5 units from the August 1st beginning inventory.

Cost of goods sold= 7*14 + 5*7= $133

7 0

3 years ago

Pollution and raw material shortages constitute immediate threats to some firms buy are often opportunities for other firms. The

castortr0y [4]

Answer:

Yes

Explanation:

Competitors will have to find out other options on recycling materials what opens opportunities for the recycling and and other green industry. like recycling Aluminium is cheaper than producing it from Bauxite, for example.
Shortage of raw material and pollution costs will change another macro environment factor as legal and political forces. What definitely changes the strategy for these companies. This can also be challenging since it may add other unplanned costs for each company.

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2 years ago