In some ways, a debit card is more vulnerable to theft than cash or a checkbook. Explain how this is so. << Read Less

Sam lives in San Diego and runs a business that sells pianos. In an average year, he receives $793,000 from selling pianos. Of t

iragen [17]

Answer:

a. explicit cost

b. explicit cost

c. implicit cost

d. implicit cost

Explanation:

Explicit costs can be defined as the actual costs incurred to run the business like supplies, utilities, materials or wages, while implicit costs can be defined as the opportunity cost of running the business like the potential salary of working in another job or the possible revenue of renting the current operating location.

a. The wages and utility bills that Sam' pays - explicit cost (actual costs)

b. The wholesale cost for the guitars that Sam' pays the manufacturer - explicit cost (actual costs)

c. The rental income Sam' could receive if he chose to rent out his showroom - implicit cost (potential revenue lost)

d. The salary Sam' could earn if he worked as a financial advisor - implicit cost (potential revenue lost)

7 0

3 years ago

Sheldon and Morton formed a partnership with capital contributions of $80,000 and $40,000, respectively. Their partnership agree

Anastaziya [24]

Answer:

The answer is:

Sheldon: $39, 500; Morton: $50, 500

Explanation:

A partnership is a binding agreement between two or more parties to carry on a business. The sole purpose of this agreement is to share skills and expertise so as to generate a profit. In a partnership, the partners have unlimited liability meaning that if the business established by the partners in unable to repay creditors, the creditors are legally allowed to seize the personal assets of the partners to cover the debts owing. However, in accounting for financial performance, the business is considered to be a separate entity (exists independent of the partners). Sheldon and Morton have established a profit-sharing arrangement that compensates Sheldon for the capital contribution (larger interest share) and Morton for his contributions to the business operations (larger salary share). The profit after these deductions is shared equally between the 2 partners. Assuming the given net income is after operations but before partner deductions, the share of the partners is calculated as follows:

Sheldon Morton

Interest $8,000 $4,000

Salaries $10,000 $25,000

Profit share $21, 500 $21, 500

Total share $39, 500 $50, 500

Interest (10% * $80, 000) (10% * $40, 000)

Profit share (50% * $43,000) (50% * $43,000)

Net Profit Share: $90, 000 - $(8,000 + 10,000 + 4,000 + 25,000)= $43,000

8 0

4 years ago

When a vacuum cleaner salesman persuades people to let him vacuum their living room for free, he is likely to increase his chanc

Afina-wow [57]

He is using the foot in the door technique. This is when you ask for small things and ingratiate yourself to a person in order to make way for larger things that the person would not ordinarily do. You ask for something small, and then that makes them more likely to give you something larger when you ask.

5 0

3 years ago

1. A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in

NARA [144]

Answer:

The subsidiary reports cost of goods sold at A. $660,000.

Explanation:

Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:

Cost of goods sold = Opening inventory + Purchases - Closing inventory

The subsidiary calculates its cost of goods sold as follows.

Opening inventory $120,000

Add: Purchases $720,000

Less: Closing inventory ($180,000)

Cost of goods sold $660,000

Therefore, the correct option is A. $660,000.

6 0

3 years ago

After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of

Law Incorporation [45]

Answer:

$4.50

Explanation:

The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.

If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.

Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost

= $5.00 - $0.50

= $4.50

3 0

3 years ago