All categories

3 years ago

Economic costs of production differ from accounting costs in that

Business

1 answer:

kramer3 years ago

4 0

Answer:

Accounting Cost : Explicit paid costs

Economic Costs : Implicit , Opportunity Cost based, unpaid costs

Explanation:

Accounting Cost of production involves only explicit costs of production. Economic Cost of production involve both explicit & implicit costs of production, including the opportunity costs of factor services.

Explicit cost of production is the factor cost paid to other party, for which money exchange takes place. Implicit cost of production is the imputed cost of self owned factor services, for which no monetary exchange (payment) with other party take place.

Eg : Salary paid to staff, rent of business rented property is an Accounting Cost. Self imputed salary of entrepreneur , interest of self financed capital are imputed costs.

You might be interested in

Crestfield leases office space. On January 3, the company incurs $22,000 to improve the leased office space. These improvements

BabaBlast [244]

Answer:

Journal 1

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

Journal 2

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

Explanation:

The improvements to leased offices are of a Capital Nature. Thus thus is a capital expenditure not a revenue expenditure.

Any improvements made on the leased property belongs to the lessor and thus the lessee will still be bound by the lease period.

In the year of improvements the journals are as follows

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

A journal to record the depreciation also need to be effected

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

5 0

3 years ago

When you tell an acquaintance your telephone number, you do not recite the digits one by one at a constant rate, as in "3, 3, 7,

mojhsa [17]

The answer would be chunking; working. Chunking is a word mentioning to the development of taking separate pieces of information (chunks) and combining them into larger units. By grouping each piece into a large whole, you can progress the amount of information you can recall. The key drive of this is to look for and determine these organized chunks of information in working memory, so that they can then be used proficiently and repeatedly, with slight further input from awareness.

7 0

3 years ago

Define the term human rights violations

anygoal [31]

Answer:

Human rights violation or abuse means any harm committed by a State or a business enterprise, through acts or omissions in the context of business activities, against any person or group of persons, individually or collectively, including physical or mental injury, emotional suffering, economic loss or substantial impairment of their human rights, including environmental rights, through acts or omissions in the context of business activities of a transnational character.

Explanation:

7 0

2 years ago

Jebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for S

melamori03 [73]

Answer:

Jabeli must include = $2,220,000

Explanation:

As per the data given in the question,

Gross Income in 2019 = $2,300,000 - $80,000

= $2,220,000

So, Jabeli should include $2,220,000 in gross income and Jabeli is allowed to deduct $2,100,000 in 2019

In completed contact method of accounting :

Till the contract is completed and accepted, no revenue from the contract is recognized

In this case the purchaser may desire additional work to be done on a long term contract.

The regulations do not provide any amount of income(or loss) until the dispute is resolved.

7 0

3 years ago

Hugo has been working on his company’s new marketing campaign for the past few weeks. He is now looking at the target market and

krek1111 [17]

Answer:The Sixth Step determining the promotional mix, which tool to use , when and how much.

Explanation:

Promotional mix is how resources are allocated of resources among elements such as advertising, sales promotion, public relations, personal selling or direct marketing.

Integrating the elements together depends on the product one is promoting, preferences of the customers, budget and general market conditions. The sixth step shows which tools and promotional mix to use to achieve the aim of the organization. Hugo is in the sixth step of the marketing planning process.

5 0

2 years ago