$45,000 per year is the economic cost of the time he contributes to the new business.
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Explanation:</u></h3>
The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.
In the example given Jim was earning d $70,000 per year and now he is paying himself $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is $70,000 and the implicit cost is $25,000.
Answer:
Procedure that is used in order to produce the desired quantity of products being produced.
Explanation:
Based on the information being described in this scenario it can be said that the HR specialist will have Craig define the Procedure that is used in order to produce the desired quantity of products being produced. Without this information the HR specialist can not help him conduct a work flow analysis because he does not have the information required to know what the employees should be doing and how the current company is working.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
equivalent cost per unit $6
Explanation:
under the weighted average method we calcualte the equivalent unit cost by adding both, the beginning WIP inventory and the cost added during the period:
$4,500 + $37,800 = $42,300
Then we divide over the equivalent units:
$42,300 / 7,050 units = $6
Answer:
$730,000
Explanation:
In the given question, the building was purchased and it repairs also. Plus, annual taxes are applicable to the property. The current market value and the book value of the building is also given in the question
For including the amount in the initial cash flow for the building project we consider the current market value of the building i.e $730,000. No other cost should be recognized
Answer:
Price = $1,000
Explanation:
Price to be charged = (Production cost + Target return)/ units
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<em>Required target return- ROI × investment cost</em>
= 20% × 1,000,000 = $200,000
<em>Production cost = Variable cost + Fixed cost</em>
Production cost = (500 × 200) + 200,000 = 300000
<em>Total sales revenue to achieve a return= Production cost + target return </em>
= 300,000 + 200,000 = 500,000
Selling price per unit = $500,000/500 units
= $1,000
