Answer:
a. True
Explanation:
The Activity variance is based on the difference in actual level of activity used in flexible budget and the level of activity accounted in the planning or master budget
Answer:
The reconciled balance is:
Explanation:
Cash 8900,15
Books
Cash receipts pending on bank -9821,55
Checks written 7986,05
Checks written not recorded -49,55
Banks
Bank service fee -48,1
Interest earned 33,1
Bank conciliation 7000,1
Bank account 7000,1
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La NIC 2 define los inventarios como activos que son: mantenidos para la venta en el curso normal del negocio, en el proceso de producción para dicha venta, o. en forma de materiales o insumos para ser consumidos en el proceso de producción o prestación de servicios.
Answer:
a)
1. Explicit cost
2. Implicit Cost
3. Implicit Cost
4. Explicit cost
b)
Accounting Profit is $62000.
Economic Profit is -$3000. (a loss of $3000)
Explanation:
a)
Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.
Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.
1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>
2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>
3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>
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4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
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b)
Accounting profit = Total Revenue - Total explicit cost
Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)
Accounting Profit = 793000 - 430000 - 301000 = $62000 profit
Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss
Answer:
Accounting profit= $55,000
Explanation:
Giving the following information:
Last year, he earned $70000 in revenue. He had explicit costs of $15000.
<u>The accounting profit doesn't take into account the opportunity cost of other income options.</u>
Accounting profit= 70,000 - 15,000= $55,000