Answer:
Consider the possible advantages and drawbacks of a decision.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost-benefit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-benefit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
Hence, a business performs a cost benefit analysis when it consider the possible advantages and drawbacks of a decision i.e whether or not it would bring value to the company or create a significant level of impact on the business.
Answer:
Grouper Inc. is involved in a lawsuit at December 31, 2020
It is given that Grouper will be liable for $863,600 as a result of this suit. Therefore, the journal entry for this situation is as follows;
On December 31, 2020
Lawsuit loss A/c Dr. $863,600
To Lawsuit liability $863,600
(To record the lawsuit loss of the Grouper Inc.)
Answer:
As factors of production, the reward for land is rent, capital is interest, labour is wages and salaries and entrepreneur is profit.
Answer:
The income received by an individual who supplies labor services equals the incremental benefit generated to the firm by the individual´s labor
Explanation:
The marginal productivity theory of income or wages states: firms pay a salary that is equal to the extra benefit a (that is why is marginal; an extra unit in this case is an extra unit of labor) worker represents in output of production. In other words, if the firm employees a new worker, its salary would be equal to the extra output produced by him or her (marginal product of labor). Because of this, wages depend on the production function each firm has. The mathematical formula to get the marginal product of labor is: dF/dL, where F is the production function and L represent labor in it.
Seniority is being older or more experienced than someone else. An example of the seniority rule would be a 4 year senator being appointed to a committee over a newly elected senator.
