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tino4ka555 [31]
2 years ago
9

In a situation of neither input nor output fixed, the proper economic criterion is to _________________. A. Maximize the output

B. Minimize the inputs C. Minimize (inputs - outputs) D. Maximize (outputs - inputs)
Business
1 answer:
arsen [322]2 years ago
6 0

Answer:

D. Maximize (outputs - inputs)

Explanation:

The input is the raw material, labor, the efforts that is used in making the product while the output is the product or the result arising from the input

The profit arises when output and the input varies from each other

i.e

Profit = Output - input

In the case where there is neither an input nor output fixed, so we have to maximize the profit i.e (output - input) but the condition is that they are different from each other

Hence, the correct option is D.

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Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 181,000 R
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<em><u>Any cost directly attributable to bring the asset into current location and condition necessary for it to be capable of operating it, in the manner intended by the management ( Para 15) 4.1.1. Clause b</u></em>

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2) if the land is purchased with the building on it and that building is used for a short time and then demolished then the building demolish charges would be expense out.

3)if the land with a building is purchased with the intention of demolishing an old building and building a new building then  using it then two different costs accounts of land and building would be used. We would not demolish the old building without the new building being made so the demolish would be added in the incremental costs of the new building.

The given question is of the third scenario therefore

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