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Natasha_Volkova [10]
2 years ago
10

Economists consider both explicit and implicit costs when measuring economic profit

Business
1 answer:
patriot [66]2 years ago
7 0

Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.

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Operations management is the discipline that manages the day-to-day and tactical activity of the entire value added chain, which
makvit [3.9K]

Answer:

Operations Management:

a) true

Explanation:

Operations management ensures that the organization achieves its objectives by coordinating processes and executing them in the conversion of organizational resources into goods and services which will enable the organization to maximize profits.  It is the core of the organizational hierarchy and plays important tactical roles that deliver results.  It translates the strategic policies of top management into day-to-day actionable and deliverable processes to meet external needs (customers'), thereby generating income for the owners of the business.  Without operations management, a business remains an idea that cannot be implemented.

6 0
3 years ago
Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and te
mina [271]

Answer:

INCREMENTAL cost allocation method

Explanation:

Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.

6 0
3 years ago
Read 2 more answers
Mint Co.'s cash balance in its balance sheet is $1,300,000, of which $300,000 is identified as a compensating balance. Additiona
Natasha2012 [34]

Answer:

Correct option is B Yes and Yes

Yes - Compensating shall be reported, And Restricted shall also be reported.

Explanation:

Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.

Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.

Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.

Therefore correct option is B

Yes - Compensating shall be reported, And Restricted shall also be reported.

7 0
3 years ago
Respas Corporation has provided the following data concerning an investment project that it is considering:
Ber [7]

Answer:

$462

Explanation:

The computation of the net present value is shown below:

= Present value of all year cash inflows by considering the salvage value - initial investment

where,

Present value of all year cash inflows by considering the salvage value is

= Annual cash flows × PVIFA factor for 4 years at 15% + Salvage value × discount rate at 4 year on 15%

= $54,000 × 2.855 + $11,000 × 0.572

= $154,170 + $6,292

= $160,462

And, the initial investment is $160,000

So, the net present value is

= $160,462 - $160,000

= $462

We simply applied the above formula to determine the net present value

Refer to the PVIFA table and discount factor table

This is the answer but the same is provided in the given option

4 0
3 years ago
Suppose that you will receive annual payments of $20,500 for a period of 10 years. The first payment will be made 10 years from
Greeley [361]

Answer:

Present value of this stream of payments=97,179.75

Explanation:

The payment stream described is an ordinary annuity, 10 equal payments in equal intervals, with the 1st payment being received at the end of year 10 and the last one at the end of the 20th year.

Present value of an ordinary annuity  is calculated as follows:

Present value =PMT*\frac{[1-(1+i)^-^n]}{i}

Where PMT is equal payments made each period

= $20,500

              i is the required rate of return per period

= 5%

              n is the number of periods= 10

Applying this formula would thus give the present value of the annuity at the end of year 10 as follows:

Present value(t=10) =20,500*\frac{[1-(1+0.05)^-^1^0]}{0.05}  = 158,295.57

This is the present value at the end of year 10, and this value has to be discounted 10 years back to today as follows:

Present Value (today) =\frac{158,295.57}{(1+0.05)^1^0}=97,179.75

4 0
3 years ago
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