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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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The investment a company makes in training employees to perform their duties and redesigning products and processes to improve t
Andre45 [30]

Answer:

True

Explanation:

Prevention Cost is the cost which is incurred to avoid the loss due to defects in the products manufactured, here the cost incurred is as follows:

Training employees that is the benefit from training will be reducing cost and improving quality of the product, therefore, it will be considered as prevention costs.

Further cost incurred for redesigning products and processes will improve the quality of the product and the process therefore this cost can also be considered as prevention costs.

Final Answer

The above statement is true.

4 0
3 years ago
Work-in-process that is being transferred into a department is debited to that work-in-process account, while work-in-process th
oksian1 [2.3K]

Answer:

True

Explanation:

Work in process refers to those goods which require further processing. When a department transfers work in process(WIP) to another department, the recipient department's stock of WIP is debited i.e debit the receiver principle.

Similarly work in process that is being transferred out of a department would be recorded like Purchase return i.e credit what goes out.

A debit in WIP account increases it's balance whereas a credit in WIP account reduces it's balance.

4 0
4 years ago
Business owner robert should use ________ schedules of reinforcement to keep his employees mentally alert and interested.
Ivanshal [37]

Robert should use intermittent schedules of reinforcement to keep his employees mentally alert and interested. The procedure of learning through association to increase or decrease voluntary behavior using punishment and reinforcement is known as operant conditioning.

Reinforcement schedules are the rules that govern the timing and frequency of reinforcer delivery in order to increase the likelihood that a target behavior will occur again, strengthen, or continue. A contingency timetable is one that includes reinforcement. While intermittent schedules provide reinforcers.

After some but not all correct replies, intermittent schedules apply reinforcement after each correct response, or none at all. Reinforcers are only used after the target behavior has occurred, so reinforcement is conditional on the desired behavior.

To learn more about intermittent click here,

brainly.com/question/27612374

#SPJ4

4 0
2 years ago
Salcia is a country that depends heavily on domestic products. The Salcian government decides on the products that can be import
hoa [83]

Answer:

D) Mercantilism

Explanation:

Based on the information provided within the question it can be said that Salcia's approach to international trade is being influenced by Mercantilism. This term refers to a policy that was created in order to maximize exports of a nation while at the same time minimizing the imports. This is what Salcia is trying to accomplish by not importing anything that they can make at home.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
4 years ago
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 12200 gallons of direct materials that a
Anika [276]

Answer:

$8,800 favourable

Explanation:

The computation of direct material quantity variance is seen below;

= Standard price × ( Standard quantity - Actual quantity)

= $4 × [(2 gallons × 7,200 units) - 12,200 gallons)

= $4 (14,400 gallons - 12,200 gallons)

= $4 × 2,200 gallons

= $8,800 favorable

Therefore, the direct materials quantity variance for last month is $8,800 favourable

8 0
3 years ago
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