Answer:
a. Economic profit is the excess of revenue over both opportunity (implicit) and explicit costs. Explicit costs are the cost of all inputs used.
b. The difference between economic profit and accounting profit is that in calculating economic profit, both the explicit costs and the implicit or opportunity costs are deducted from the revenue. Whereas, in computing the accounting profit, only the explicit costs are deducted from the revenue.
c. Economists measure economic profit rather than accounting profit because economists believe that the real cost of an output includes the economic or opportunity cost (potential benefits lost as a result of the course of action chosen).
Explanation:
Opportunity cost is the implicit cost incurred, which is equal to the potential benefits lost by an individual or a business, when an alternative is chosen instead of the other alternative. It is an important concept in the computation of economic profit. The concept ensures that both implicit and explicit costs are considered when determining the profits generated by a business.
Answer:
D.$54,000
Explanation:
A flexible budget is a one which changes or adjusts with change in actual activity. The flexible amount is more reliable than the static amount. The static budget is one which is not adjusted with level of real activity. The machine hours are used as basis of adjustment for flexible budget. The amount of fixed overhead budgeted allocation cost is adjusted based on machine hours according to actual machine hours of 985 hours.
Answer:
A) $80,000
Explanation:
According to the Internal Revenue Service (IRS), the deduction would be claim as a lower value of 20% qualified business income plus 20% of real investment or 20% of taxable income less net capital gains
So, 20% qualified business income = $400,000 × 20% = $80,000
And, the 20% of taxable income = $500,000 × 20% = $100,000
So, the lower value would be $80,000
Answer: The second message is a type of <em><u>advanced shipping notice.</u></em>
<em><u>An advanced shipping notice is known as an e-communication representation that the provider sends the retail merchant beforehand of a shipment.</u></em>
In this case the vendor sent an immediate order confirmation message by e-mail and within a day or two, a second message stating that the order is in the mail.
<u><em>Therefore, the correct option is (c)</em></u>
Answer:
Ease of entering
Explanation:
The main difference between perfect competition and monopolistic competition is that firms sell a similar product in perfect competition. In monopolistic competition, firms sell differentiated products.
In both market structures, their many seller and buyers. There is the ease of entry and exit for suppliers. In both markets, there are no dominant suppliers.
