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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 dometic firm may decide to contract for the production of its goods by established foreign manufacturer. Such pricate-label ma

Monica [59]

Answer:

Contract manufacturing.

Explanation:

A domestic firm may decide to contract for the production of its goods by established foreign manufacturer. Such private-label manufacturing by a foreign company is called contract manufacturing.

Contract manufacturing involves the process of outsourcing a company's manufacturing business, such that a foreign company engages in the production of a private-label product which are then primarily marketed or distributed by a domestic company under its own brand name.

This ultimately implies that, it is a manufacturing process which involves the production of goods by a company under the brand name of another company.

8 0

3 years ago

Vangaurd Health System bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If y

Umnica [9.8K]

Answer:

Price willing to pay=$1105.94

Explanation:

Annual Coupon Payment=$1,000*0.08

Annual Coupon Payment=$80

Calculating Present Value (PV) of Par Value:

$PV=\frac{FV}{(1+i)^{20}}$

Where:

i is the rate of return.

FV is par value

$PV=\frac{\$1000}{(1+0.07)^{20}}$

PV= $258.419.

Calculating PV of annual Coupon Payment:

$PV=A\frac{1-(1+i)^{-20}}{i}$

i is the coupon rate

A is the annual Payment

$PV=\$80\frac{1-(1+0.07)^{-20}}{0.07}$

PV=$847.521

Price willing to pay= Present Value (PV) of Par Value+ PV of annual Coupon Payment

Price willing to pay=$258.419+$847.521

Price willing to pay=$1105.94

8 0

3 years ago

During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about ho

umka2103 [35]

Answer:

Maintenance, Installation, and Repair

Explanation:

Heres some evedence to proove:

During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about how to keep their cars in working condition. She manipulates numbers throughout the day to get her customers the best price possible. Based on her tasks, which most likely is her career?

^O^

8 0

3 years ago

Read 2 more answers

Last year, Bad Tattoo Co. had additions to retained earnings of $4,780 on sales of $95,560. The company had costs of $75,720, di

fredd [130]

Answer:

e. $6,042

Explanation:

Net income of Bad tattoo co. = Addition of retained earnings + Dividends

= $4,780 + $2,980

= $7,760

Income before tax of Bad tattoo Co = Net income / (1-tax rate)

= $7,760 / (1-34%)

= $7,760 / 0.66

= $11,758

But,

Income before tax = Sales - Costs

- Depreciation expense - Interest expense

$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040

$11,758 = $19,840 - Depreciation expense - $2,040

Depreciation expense = $19,840 - $11,758 - $2,040

Depreciation expense = $6,042

8 0

3 years ago

What can you expect when you ask clients for testimonials?

Bogdan [553]

Most clients rather than write out a testimonial are more willing to approve a testimonial that you've written as it saves time for them and improves their relationship with you.

5 0

4 years ago