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ruslelena [56]
3 years ago
6

Why do businesses take financial cost into account other than social cost when making decisions.

Business
1 answer:
deff fn [24]3 years ago
7 0

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

Why do businesses take financial costs into account other than social costs when making decisions.?

The reason why is because businesses are created to make profits. And financial costs directly impact sales, revenue, and profits. Any other consideration that does not directly affect the balance sheet or the bottom line, is not considered a priority and takes the back seat when business decisions are made.

On the other hand, the social cost should be important and it is, but not as important as the financial costs for the above-mentioned reasons.

Social costs are more on the side of the ethics of the managers or leaders of the organizations. And ethics and moral values are not a prominent thing to be considered in the decision-making process of modern corporations.

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Mountain Ski Corp. was set up to take large risks and is willing to take the greatest risk possible. Lakeway Train Co. is more t
SpyIntel [72]

Answer:

a-1)

- Project A = 0.70

- Project B = 0.64

- Project C = 0.81

- Project D = 1.29

a-2) Mountain Ski Corp. should choose projects D and C

b) Lakeway Train Co. should choose project B

Explanation:

It’s needed to calculate the coefficient of variation for each project

Formula:  CV=σ/μ

Where:  

σ = standard deviation

μ = mean

The coefficient of variation (CV) is a ratio that compares the standard deviation with the mean of a project`s return, indicating the volatility and risk of it. The lower its value the better risk-return trade-off. So, a company set up to take large risks such as Mountain Ski Corp. would choose projects with high CV (Projects D and C), and a risk-averse company such as Lakeway Train Co. would choose projects with low CV (Project B).

5 0
3 years ago
Wendy is a self employed certified financial planner and began his business in 2018. During 2018, she purchased a $500 computer
Ann [662]

The correct answer would be option A, computer,desk,legal/incorporation fees,roof.

She also paid $6000 in legal/incorporation fees and spent $12000 for a new roof for the office building she owns. Computer, desk, legal/incorporation fees, roof, purchases she can expense in 2018 without limitations.

Explanation:

Wendy is a financial planner who began his business in 2018. She purchased computers, desks, paid legal/incorporation fees, and also spent money for a new roof for the office building.

All these purchases are already paid by him in the running year. So he does not have to worry about their limitation at least in 2018. These are mostly one time purchases that would need only maintenance in years, or he might have to pay only for the renewal of the legal/incorporation. Otherwise there would be no limitation on him in 2018 at least.

Learn more about Purchase expense without limitation at:

brainly.com/question/8050807

#LearnWithBrainly

7 0
3 years ago
The purchase of store equipment for cash reduces assets and owner's equity by an equal amount.
irga5000 [103]
False, increases assests
5 0
3 years ago
Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the princ
kotegsom [21]

Answer:

Role of management accounting :

1. provide internal information on operations

2. help in decision making

Utilization of management accounting principles

1. make or buy decisions

2. continuing or discontinuing of operations

Useful managerial Accounting Activities

1. planning

2. deciding on the alternative causes of action

Explanation:

Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.

This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.

Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control

7 0
3 years ago
How can quality control affect production?
leva [86]

Answer: Quality Assurance with Quality Control

Quality assurance streamlines production and helps to ensure that the final products meet the company's quality criteria. It ensures that the processes used to design, test, and produce products will be done correctly.

Explanation:

Hope it helps

3 0
3 years ago
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