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katrin2010 [14]
2 years ago
6

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sol

d 100,000 units of its output at $50 per unit, its accounting:a. profits were $100,000 and its economic profits were zero. b. losses were $500,000 and its economic losses were zero. c. profits were $500,000 and its economic profits were $1 million. d. profits were zero and its economic losses were $500,000.
Business
1 answer:
aliina [53]2 years ago
5 0

Answer:

d. profits were zero and its economic losses were $500,000.

Explanation:

Accounting profit = Revenue - explicit cost

Revenue = price × quantity sold

$50 × 100,000 = $5,000,000

Accounting profit = $5,000,000 - $5,000,000 = $0

Economic profit = Accounting profit - Explicit cost

Explicit cost is the opportunity cost of this production activity.

Economic profit = $0 - $500,000 = $-500,000

This is a loss

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Ch14 C1: Explain the purpose and nature of, and the role of ethics in, managerial accounting.
Wittaler [7]

Answer and Explanation:

Purpose of Ethics- Ethical codes are the fundamental principles that accounting professionals choose to abide by to enhance their profession, maintain public trust, and demonstrate honesty and fairness.

Nature of Ethics- Independence and objectivity, Integrity, Confidentiality, professional confidence and professional behaviour.

Role of Ethics:

Understanding the ethical frameworks for independence, integrity, confidentiality and professional competence can help decision-making & enhance reputation of the field of accounting.

8 0
3 years ago
Read 2 more answers
an investment property generates a cash flow of $420,000 and appraises for $8,800,000. what is the owner’s return on investment?
Licemer1 [7]

The owner’s return on investment  is $4,583,000

Investment definition is an asset received or invested in to build wealth and keep money from the tough earned earnings or appreciation. funding that means is generally to reap a further source of profits or benefit take advantage of the funding over a selected period of time.

Making an investment is a powerful way to put your money to work and probably build wealth. smart investing may additionally allow your money to outpace inflation and boom in value. The greater growth potential of investing is primarily because of the power of compounding and the chance-go-back tradeoff.

Within the maximum sincere feel, investing works when you buy an asset at a low rate and promote it at a higher price. This sort of go back to your investment is called a capital benefit. earning returns with the aid of selling assets for a profit—or figuring out your capital profits—is one way to make cash investing.

$550,000 ÷ 0.12 = $4,583,000

Learn more about investment here brainly.com/question/25300925

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3 0
1 year ago
Joan Osborne is evaluating a potential capital investment. She has calculated the net present value using a minimum rate of retu
antoniya [11.8K]

Answer:

The investment of Joan Osborne is expected to produce a rate of return less that 10%.

Explanation:

This implies that the expected rate of return on the investment will the minimum rate of return.

An investment with a positive NPV would produce produce  an expected rate of return higher than the minimum rate of return and vice versa.

The investment of Joan Osborne is expected to produce a rate of return less that 10%.

5 0
3 years ago
A software company is weighing whether to release a new version of its software as scheduled. The company can go ahead and relea
Verizon [17]

Answer:

Vaporware

Explanation:

Vaporware is a product, which is generally software or hardware and it is announced in the public, however, it never got released nor it got cancelled or it missed the release date by many days. Vapor is used in the name to indicate that its advertisement is full of hot air with no substance. This issue been taken care to have fair competition in the industry.

In the given scenario, company choosing delay release until the bugs can be worked out is an example of Vaporware.

5 0
3 years ago
A student wanted to know the most effective way to grow bacteria in a lab. He conducted a descriptive investigation instead of a
likoan [24]

Answer:

C). A descriptive investigation usually does not involve much data collection to support a hypothesis.

Explanation:

The limitation of a descriptive investigation is that 'it lacks sufficient data to support the proposition.' A descriptive investigation <u><em>does not test the validity of a truth or distinct methods of growing it or to make comparisons between them. It rather focuses only on describing in-depth instead of practically examining the validity of the fact</em></u> and using it to supporting the claim made in the hypothesis, unlike an experimental investigation. Thus, <u>option C</u> is the correct answer.

7 0
3 years ago
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