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ahrayia [7]
3 years ago
9

Explain why the consideration of opportunity costs may be very relevant to a firm. How can opportunity costs affect a business d

ecision?
Business
1 answer:
harina [27]3 years ago
8 0

Answer:

Importance : Opportunity cost is lost Contribution

Effect : Opportunity cost increases the variable costs of the decision that has been chosen

Explanation:

Opportunity Cost is a lost contribution. Contribution is calculated as Sales less Variable Costs.

Considering opportunity costs is very relevant to a firm because it constitutes part of the money lost that cold have been earned when another alternative course of action is chosen over another. The opportunity cost <u><em>would have been</em></u> the revenue for the disregarded option.

So opportunity cost increases the variable costs of the decision that has been chosen.

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Answer: A deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.

Explanation:

A deferred call provision refers to the provision whereby the calling of a bond before a particular date is prohibited. The bond is known to be call protected during this period.

Therefore, a deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.

6 0
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Answer: breakthrough                    

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Hence it can prove as a breakthrough for new digger.

5 0
4 years ago
When the effective-interest method of bond discount amortization is used,
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Answer: C. interest expense will not be a constant dollar amount over the life of the bond.

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3 years ago
Initially, you produce 100 boxes of jelly beans per time period. Then a new customer calls and places an additional order for je
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