1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tensa zangetsu [6.8K]
2 years ago
12

Barney decides to quit his job as a corporate accountant, which pays $10 890 a month, and goes into business for himself as a ce

rtified public accountant. He runs his business from his converted garage apartment, which he could rent out for $926 a month if he wasn’t using it as a home office. He must purchase office supplies worth $71 a month, and his monthly electricity bill has increased by $90 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $15 000 per month.a. What are Barney’s monthly explicit costs? b. What are Barney’s monthly implicit costs? c. What are Barney’s monthly economic costs?
Business
2 answers:
mash [69]2 years ago
7 0

Answer:

a. Barney's monthly explicit costs: $161;

b. Barney's monthly implicit costs: $11,816;

c. Barney's monthly economic costs: $11,977

Explanation:

a.

Barney's monthly explicit costs include any costs that he actually paid extra every month as the result from running his business including: cost of office supplies + cost of electricity bill = $71 + $90 = $161

b.

Barney's monthly implicit costs include any cost that he does not actually pay extra, yet he has to sacrifice these income as the results of running his business which includes: Cost related to his salary sacrifice + Cost related to his apartment rental = 10,890 + 926 = $11,816

c. Barney's monthly economic costs = Barney's monthly explicit costs + Barney's monthly implicit costs = $11,977

Lyrx [107]2 years ago
5 0

Answer:

a) Barney's monthly explicit costs are the costs of office supplies and monthly electricity bill increase, which are $161 or $(71 + 90).

b) Barney's monthly implicit costs are the costs of salaries not earned and the rent of his home office.  These equal to $11,016 or $(10,890 + 926).

c) Barney's monthly economic costs are the total of explicit and implicit costs.  These equal to $11,970 or $(161 + 11,016).

Explanation:

There are many cost classifications when the impact of costs on profits are to be calculated.  In this example, we shall discuss the following:

a) Explicit Costs: These are the costs which a business incurs by running the organisation.  They usually and directly affect profitability.  Every business tries to minimize such costs.  Example is the cost of Wages and Salaries paid to employees.

b) Implicit Costs:  These costs are opportunity costs incurred when a business pursues an alternative decision vis-a-vis another or uses its own internal resources instead of paid resources.  They are usually calculated for decision making purposes.  An example is the cost of rent that could have been incurred if the asset is not internally sourced.

c) Economic Costs:  These are costs that include both actual and opportunity costs.  It tries to weigh all costs, including the costs for pursuing alternative courses of action.

You might be interested in
How might taxes have an impact on your financial plan?
liubo4ka [24]
They lower your income 
8 0
3 years ago
Alex and J.J. Both apply for two job openings in the same department at a law firm in Chicago. They both interview very well and
denis23 [38]

Solution :

In the context, it is given Alex and J.J. both are applying for a job openings in a law firm at Chicago. Both of them got the job offer but J.J. got lower salary than Alex. The salaries are different for both J.J and Alex. Some of the possible explanations for the difference in salaries that may be related to some scenarios are :

  • Alex went to higher tier law school  ----  difference in education
  • J.J. is reentering the workforce after two years away  ---  difference in experiences.
  • Alex will be working with a notoriously difficult boss  ---  compensating differentials.
  • Alex is a man and J.J. Is a woman  ---  economic discrimination.

                         

8 0
3 years ago
Jamison Company developed the following reconciling information in preparing its June bank reconciliation: Cash balance per bank
Alex787 [66]

Answer:

c. $15,065

Explanation:

In bank reconciliation the book balance is adjusted using some adjustments made by the the bank and still pending by the business. We make an adjusted balance of cash book balance and bank statement balance to reconcile the amounts.

Cash balance per book 6/30    $13,000

+ Note receivable                      $4,000

- Bank charges                          $35

- NSF check                               <u>$1,900  </u>

Adjusted Cash book balance   <u>$15,065</u>

Note receivable is received in the bank but not been recorded by the business. It will be added to the balance because it will increase the balance.

Bank charges are deducted by the bank but not been recorded by the business it will be deducted.

NSF check have already added by the balance but its not been cleared. So it needs to be deducted form the Book balance.

3 0
3 years ago
How does fractional reserve banking grow the economy?
Aleks [24]

Answer:

C. By allowing the same money to be both stored as a deposit and  loaned to businesses is the correct answer.

Explanation:

6 0
3 years ago
How is the law of increasing costs similar to the concept of decision making at the margin?
amm1812
Helpppp usssss plzzzzzzzzzzzzzzzz
3 0
3 years ago
Other questions:
  • What best describes Subsidized federal loans
    12·2 answers
  • Which photo Grapher is famous for his or her work at Yosemite national park?
    11·2 answers
  • Naples Company produced 650,000 units and sold 500,000 units. Their unit selling price is $10. Cost of goods sold is $6 per unit
    5·1 answer
  • Suppose that the position of a​ nation's long-run aggregate supply​ (LRAS) curve has not​ changed, but its​ long-run equilibrium
    8·1 answer
  • Company A has a beta of 0.70, while Company B's beta is 1.20. The required return on the stock market is 11.00%, and the risk-fr
    12·2 answers
  • A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%
    9·1 answer
  • Pilet Pte Ltd balance sheet reflected assets of 10,000, liabilities of 5,000 and share capital of 2,000 as of December 31,2009.
    15·1 answer
  • Omega Enterprises budgeted the following sales in units:​
    5·1 answer
  • What is a business's target market?
    6·2 answers
  • After making a decision, Rosario seeks information that confirms the decision was a good decision and ignores conflicting inform
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!