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Ipatiy [6.2K]
3 years ago
11

Economic profits are:a.less than accounting profits if implicit costs are greater than zero.b.less than accounting profits even

if implicit costs are zero.c.greater than accounting profits if implicit costs are greater than zero.d.greater than accounting profits even if implicit costs are zero
Business
1 answer:
Lady bird [3.3K]3 years ago
5 0

Answer:

option (a) is correct.

Explanation:

Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.

Whereas the accounting profits takes into the effect of explicit costs only.

Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.

Explicit costs refers to the costs that are incurred for operating or running a business.  

Accounting profit = Total revenue - Explicit costs

Economic profit = Total revenue - Explicit costs - Implicit costs

Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.

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2 years ago
Larkspur Industries acquired two copyrights during 2020.
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Answer:

1st copyright will not be reported on balance sheet.

2nd copyright will be reported on balance sheet.

Dr Copyright (Intangible Asset) $34,000

Cr Cash $34,000

Explanation:

<u>1st Copyright</u>

If an intangible asset is internally generated, none of its costs are capitalized.

<u>2nd Copyright</u>

Acquired copyright is reported on balance sheet as an intangible asset. Company may include only outright purchase costs in the acquisition cost of an intangible asset; the acquisition cost does not include cost of internal development.

Only recognized intangible assets with finite useful lives are amortized. Recognized intangible assets having indefinite useful lives are not amortized.

3 0
3 years ago
The phone bill for a corporation consists of both fixed and variable costs. Refer to the​ four-month data below and apply the​ h
tatiyna

Answer:

$3,799

Explanation:

The total bill amount is

Before that The computation of the fixed cost and the variable cost per minute by using high low method is computed

Variable cost per minute = (High bill cost - low bill cost) ÷ (High minutes - low minutes)

= ($4,500 - $2,630) ÷ (480 - 160)

= $1,870 ÷ 320

= $5.84

Now the fixed cost equal to

= High bill cost - (High minutes × Variable cost per minute)

= $4,500 - (480 × $5.84)

= $4,500 - $2,803

= $1,697

Now the total bill would be

= Fixed cost + expected minutes × variable cost per minutes

= $1,697 + 360 × $5.84

= $1,697 + $2,102

= $3,799

4 0
3 years ago
Choose the correct box of the best buy available. a can of peaches at 49¢ a can 10¢ off on a can of peaches usually selling for
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Answer 43 cents a can is a better buy

Explanation:

It's still cheaper then 10 cents off a 58 cents can.

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4 years ago
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An extended warranty, known as a service contract, is a type of insurance contract for the product you buy. It's usually provided by the merchant at the time of purchase.

<h3>What is the idea of an extended warranty?</h3>

Extended warranties are plans that extend the manufacturer's warranty duration on consumer durable items beyond the manufacturer's offer. It pays for the cost of replacing or repairing the product if it is damaged as a result of a manufacturing flaw or shoddy workmanship.

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2 years ago
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