All categories

3 years ago

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.

You might be interested in

Identify which of the following items would be reported in the balance sheet:a. Cash d. Wage expense g. Net incomeb. Sales e. Wa

djverab [1.8K]

Answer:

Items reported in the balance sheet are:

3. a, c, e, f, and h

Explanation:

a) Data and Selection:

a. Cash

b. Sales

c. Long-term debt

d. Wage expense

e. Wages payable

f. Retained earnings

g. Net income

h. Inventory

i. Cost of goods sold

a. Cash

c. Long-term debt

e. Wages payable

f. Retained earnings

h. Inventory

b) Items reported in the balance sheet are items that are assets, liabilities, or equities. These items are permanent items, which have their balances taken to the next accounting period. Non balance sheet items are reported in the income statement. They are closing or temporary items that do not have balances taken to the next period.

5 0

3 years ago

U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:

kap26 [50]

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

6 0

3 years ago

Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those

lara31 [8.8K]

Answer:

The answer is: Behavior variable

Explanation:

Behavior variable in market segmentation refers to the process of segmenting the market based on consumer buying behavior. Consumer buying behavior consists of consumer usage frequency, consumer habits, benefits sought or expected, user status, brand loyalty, etc.

6 0

4 years ago

On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January

Leno4ka [110]

Answer:

Discount on bonds issuance = $15750

Explanation:

A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,

Discount on bonds issuance = 700000 - 684250

Discount on bonds issuance = $15750

7 0

3 years ago

Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend t

FinnZ [79.3K]

Answer:

I dont know dude

Explanation:

My bad

6 0

2 years ago