All categories

4 years ago

Refer to Scenario 13-3. Ziva's economic profit from farming equals a. −$80. b. $170. c. −$130. d. $130.

Business

1 answer:

mafiozo [28]4 years ago

8 0

Answer:

a. −$80.

Explanation:

Ziva's economic profit =Revenue- (explicit costs + implicit costs)

Revenue= $300

Explicit costs=$130

Implicit cost=$25*10 =$250

Ziva's Economic Profit= $300-($130+$250)

=$300-$380

Ziva's Economic Profit=-$80.

Explicit cost is the same as accounting costs. This include cost of seeds(i.e $130), wages paid to workers, rent paid for farm land, etc.

Implicits costs on the other hand is called opportunity cost or alternative forgone.

The $25 per hour forgone by working on the farm land is implicit cost.

You might be interested in

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper

Sonbull [250]

Answer:

The correct answer is letter "A": operating activities.

Explanation:

Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

3 0

4 years ago

Merle Industries had been selling its product for $24 per unit, but recently lowered the selling price to $17 per unit. The comp

Lana71 [14]

Answer:

The company’s inventory be reported on the balance sheet as $3,150.

Explanation:

GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.

According to given data

Available Inventory = 210 units

Cost of Inventory = 210 units x $20 = $4,200

Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.

So,

Net realizable value is = 2,100 units x $15 = $3,150

As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.

7 0

3 years ago

Gordon Chemicals Company acquires a delivery truck at a cost of $39,700 on January 1, 2017. The truck is expected to have a salv

Kipish [7]

Answer:

First Year depreciation is $18,750

Second Year depreciation is $ 9,375

Explanation:

Note that the Method used to provide for Depreciation is Declining Balance Method.

The established rate is used to compute depreciation on the remaining balance after taking account of previous depreciation charges.

Which is the appropriate rate to use?

The question gave us an assumption, "Assuming the declining-balance depreciation rate is double the straight-line rate"

So Working with this Assumption the Calculations are as follows

Straight Line Rate = 1/4×100 = 25%

Therefore Declining Balance Rate = 2×25%=50%

First Year depreciation is = Depreciable Amount ×Diminishing Rate

=($39,700-$2,200) ×50%

= $18,750

Second Year depreciation is = Carrying Amount × Diminishing Rate

=(($39,700-$2,200) - $18,750)×50%

= $ 9,375

Terms:

(1) Depreciable Amount is Cost less Salvage Value

(2)Carrying Amount is Cost less Accumulated depreciation to date

3 0

3 years ago

After four years in college, you will get a graduate degree. ture or false

garik1379 [7]

Answer:

depends on what u want as your carrer

Explanation:

6 0

4 years ago

Read 2 more answers

Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the pr

BabaBlast [244]

Bobo's demand curve is elastic hence his purchasing ability is easily influenced by a slight change in the price of the product

3 0

3 years ago