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
cestrela7 [59]
3 years ago
6

Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel; $40,000 on seed

, fertilizer, and pesticides; and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations. What is the family's accounting cost? What is the family's economic cost? Could the family's economic cost ever exceed its accounting cost? Why or why not?
Business
1 answer:
yarga [219]3 years ago
6 0

Answer:

Accounting Cost

Accounting costs refers to the explicit costs which ar the actual costs related to the business venture. In this case that would be:

= Fuel costs + Seed costs  + Equipment

= 25,000 + 40,000 + 25,000

= $90,000

Economic cost

This includes the accounting costs and then adds the implicit costs which are the opportunity costs of choosing the current business venture. In this case it is the $20,000 they could have been making working at other occupations.

= Accounting cost + Salary foregone

= 90,000 + 20,000

= $110,000

Economic costs will always be higher than Accounting costs because they include both the accounting costs and opportunity costs.

You might be interested in
What is the line manger
Lesechka [4]

Answer:

it a person that is in line to be the nexted manger

Explanation:

5 0
2 years ago
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and ac
bezimeni [28]

Answer: A. True

B. True

C. False

Explanation:

A. Both Mutual Savings Banks and Credit Unions are owned by the their depositors. Credit Unions are owned and operated by members for the purpose of creating banking services for themselves at a cheaper cost.

Mutual Savings Banks are also owned by members who felt that traditional banks did not favour them.

B. Demand Deposit accounts exist in both commercial banks and Credit Unions but with different names. In Commercial banks they are known as Checking accounts for the most part but Credit Unions call them Share Draft Accounts and members of the Union can use these accounts by writing drafts like Commercial banks allow cheques.

C. While Credit Unions were formed usually for people in the same organisations or people with a common bond, Mutual Savings Banks were generally meant to uplift the lower economic classes so they did not share a common bond as Credit Union members do.

5 0
3 years ago
PLS HELP!!!
expeople1 [14]
False I believe , you shouldn’t have negativity thrown at you just because of your occupation
8 0
2 years ago
4. Each year, Holly's Best Salad Dressing, Inc. (HBSD) purchases 50,000 gallons of extra virgin olive oil. Ordering costs are $1
Norma-Jean [14]

Answer:

HBSD should take the discount because it will

lead to as savings of  $1,120.00  

Explanation:

step 1

<em>Determine the the inventory cost of EOQ</em>

EOQ =√ (2× Co× D)/Ch

= √(2× 100× 50,000)/ 80% × $0.50

= 5,000 units

Inventory cost = Purchase cost + Ordering cost + carrying cost

                                                                     $

Purchase cost = 50,000 × $0.50   =   25,000.00

Ordering cost   = (50,000/5000)× 100  = 1,000

carrying cost  =  (5000/2) × $0.50 × 80% = <u>1,000</u>

Total cost                                                   <u>27,000.</u>

Step 2

<em>Determine the inventory cost for order of 10,000 gallons</em>

Order of 10,000 gallons

Purchase cost = $(0.50-0.03) × 50,000      = 23,500.

Ordering cost = (50,000/10,000) × 100   =          500

Carrying cost = (10000/2) × $(0.50-0.03)× 80%  =<u>1880</u>

Total cost                                                          <u>   25,880.</u>

Step 3

<em>Compare the cost under the two options</em>

HBSD should take the discount because it will

lead to as savings of  $1,120.00   i.e (927,000 - 25,880.)

                   

6 0
3 years ago
Valerie promised to buy Nicole's car for $2,000. Nicole drew up the contract providing that the exchange would occur the next we
Nimfa-mama [501]

Answer:

That the mistake resulted from an accidental clerical error and that it would be unconscionable to enforce the contract.

Explanation:

Nicole mistake is a clerical error.

An error is said to be clerical if it's a mistake that changes the meaning of a document after.

Typographical error and unintentional addition or removal of a word, phrase, or figure in the document can count as clerical error.

Mistakes like this should be readily rectified without objection by the court acting sua sponte, on its own, or on the motion of either party.

8 0
3 years ago
Other questions:
  • Suspect Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 6 percent 4 years ago. The bond currentl
    15·1 answer
  • A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution
    8·1 answer
  • 4. If you were going to spend more on marketing, which product would you<br> emphasize and why?
    9·1 answer
  • Which of the following provides for a reduction in the employer's state unemployment tax rate based on the employer's experience
    13·1 answer
  • Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of
    13·1 answer
  • Sun​ Industries' budgeted sales and direct materials purchases are as​ follows: Budgeted Sales Budgeted DM Purchases January ​$2
    12·1 answer
  • How would life be without technology
    12·1 answer
  • QUESTION 31 Denzil was one of 50,000 people defrauded of $40 in an advertising scam. His best course of action to recover his mo
    9·1 answer
  • Упражнение 200 Выпишите из какого либо художественного прозведения предложения с вводными словами и предложениями
    12·1 answer
  • The Harris Company purchased equipment for $15,000 on December 1. It is estimated that annual depreciation on the computer will
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!