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3 years ago

Explain and give an example the difference between an explicit cost and an implicit cost.

Business

1 answer:

Amanda [17]3 years ago

7 0

Answer:

Explicit costs are out-of-pocket costs for a firm

for example, payments for wages and salaries, rent, or materials. Implicit costs are the opportunity cost of resources already owned by the firm and used in business

for example, expanding a factory onto land already owned.

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A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It

vodka [1.7K]

Answer:

second year depreciation 13,072

Explanation:

190,000 - 10,000 = 180,000 ammount subject to depreciation

then we do:

180,000/75,000 = 0.688 rate per bolt

to get the depreciation for the second year:

19,000 x rate = 19,000 x 180,000/75,000 = $13,072.00

doing it in a single step avoid rounding errors.

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4 years ago

Interest revenue on bonds is reported as a.part of operating income b.an addition to the investment in bonds account c.part of o

patriot [66]

Answer:

as part of other income.

Explanation:

A bond's interest income is obtained by multiplying the carrying amount and the market interest rate. Bonds pay interest to the bondholder and when the security is mature it pays off the principal invested. Interest payments are not fixed but rather vary with level of earnings of the company.

Interest revenue on bonds is considered as part of other income because it is income realised from non operating activities, so it cannot be classified as operating income.

5 0

3 years ago

A problem with creating team incentive plans is that:

Leni [432]

Answer:

The answer is (B) not all teams are created alike.

Explanation:

This is important since different teams might be composed of differently skilled individuals which might impact their ability to complete the target tasks assigned. When teams that are composed of different skill levels are given similar incentive regardless, it does not reward individual effort and create a stagnant condition.

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4 years ago

Simone is working to establish her reputation at Alpha Assemblies as part of her internship opportunity. She is looking for a wa

Tpy6a [65]

Complete question:

Alpha Assemblies produces a wide variety of products in their central Nebraska facility. Many of these products fit within a line of standard truck and trailer parts. Within this is a set of hitches that can be made in two sizes (1-1/4 and 2) and three strengths (light duty, medium duty, and heavy duty). All of the hitches in this line have "natural" finishes so no additional steps are necessary after they are cast. The machine used to cast these six hitch variations is available for 2000 hours per year. Operators are paid $15.00 per hour including benefits.

Simone is working to establish her reputation at Alpha Assemblies as part of her internship opportunity. She is looking for a way to improve the operations. She has been working on the hitch project and is looking at possible ways to cut costs. At this point she has studied the processes and their associated costs, and completed forecasts for the next year's demand.

Hitch A is the 1-1/4 inch, light duty, natural hitch. Simone has forecast the demand for this hitch at 5,656 units for the next year. It takes one operator 5.4 hours to perform a setup to produce a batch for this hitch and no other setup costs are incurred when setting up the machine. In addition, the holding costs for this item are $4.39 per unit per year. This hitch has a current batch size of 1,500 units per production run.Simone has determined that traditional EOQ is applicable for this problem. Determine the order quantity (EOQ) Simone should use if this determination is correct.

Don't round any numbers in the middle of the problem. Provide your answer to two (2) decimal places.

Answer:

EOQ = 323.05 units

Explanation:

Given the following:

Demand, D = 5656 units

Holding cost, H= $4.39 per unit per yr

Time for setup = 5.4 hours

Payment per operator = $15.00 per hour

Calculate for setup cost:

Set up cost, S = Setup time * payment

5.4 * $15 = $81

Find the order quantity, EOQ.

Take the expression

$EOQ = \sqrt{\frac{D*S}{H}}$

$= \sqrt{\frac{5656 * 81}{4.39}$

$\sqrt{104358.997}$

EOQ = 323.05 units

5 0

3 years ago

Read 2 more answers

Blake Edwards has done some research and has discovered that economists believe interest rates will rise significantly over the

joja [24]

Answer:

Economic conditions

Explanation:

Based on the scenario being described within the question it can be said that this is an example of Economic conditions influencing jobs in the future. These conditions are the different aspects that affect the overall economy of a country which include GDP growth potential, the unemployment rate, inflation, as well as policy orientations.

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3 years ago