Answer:
The correct answer is letter "B": opportunity cost of the equity capital invested by the owners.
Explanation:
In Accounting, explicit costs are those incurred as a result of the operation of the companies. <em>Raw materials, direct labor, overhead </em>or <em>rent </em>are examples of explicit costs. Implicit costs represent the opportunity costs of the firm over forgone decisions or decisions not taken at all like avoiding hiring more employees.
The economic profit of a firm includes both explicit and implicit costs. <em>The accounting profit of a company includes only the explicit costs, thus, the opportunity costs of the equity capital of investors are not taken into consideration.</em>
Answer:
$21,000
Explanation:
NOL, Phillis and Trey's taxable income must be adjusted by:
= Standard deduction - (Interest income + Net non business capital gain)
= $24,000 - [$500 + ($4,800 - $2,300)]
= $24,000 - ($500 + $2,500)
= $24,000 - $3,000
= $21,000
Therefore, the NOL, Phillis and Trey's taxable income must be adjusted by $21,000.
Answer:
C
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve
Answer: The total job cost for this job is: <u>$74 600.</u>
Explanation: The total job cost for this job is given by the sum of Direct materials, Direct labor, and overhead, so we only have to calculate overhead:
Direct materials = $13 500.
Direct labor = $23 500.
Overhead = $23500 x (1,60) = $37 600.
<u>$13500 + $23 500 + $37 600 = $74 600.</u>
An installment payment is equal payments every month, meaning it is the correct answer. (B)
