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1 year ago

Look at the Data Below then answer/calculate the totals in the questions that follow.

Business

1 answer:

kumpel [21]1 year ago

8 0

Answer and Explanation:

a. Explicit costs are actual costs incurred by the venture.

In this case those are;

= Annual lease on building + Payments to workers + Utilities (electricity, water, disposal) costs

= 22,000 + 120,000 + 8,000

= $150,000

b. Implicit costs are the opportunity costs (revenue foregone by not choosing other alternatives).

= Entrepreneur's potential earnings as a salaried worker + Entrepreneur's potential economic profit from the next best entrepreneurial activity + Entrepreneur's forgone interest on personal funds used to finance the business

= 50,000 + 80,000 + 6,000

= $136,000

c. Economic costs

= explicit + implicit costs

= 150,000 + 136,000

= $286,000

d. Accounting profit

= Revenue - explicit costs

= 380,000 - 150,000

= $230,000

e. Economic Profit

= Revenue - economic costs

= 380,000 - 286,000

= $94,000

f. New Accounting Profit

= Revenue - explicit costs

= 286,000 - 150,000

= $136,000

New Economic profit

= Revenue - economic costs

= 286,000 - 286,000

=$0

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Suppose your opportunity cost rate is 11 percent compounded annually. (a) How much must you deposit in an account today if you w

BlackZzzverrR [31]

Answer:

a. Amount = $1653.93

b. Amount = $1835.82

Explanation:

The Present Value is the deposited amount of future payments.

The payments are annuity if they are made at the end of each year.

To compute the present value of an annuity with periodic payment, we'll make use of the following formula:

M(1 - (1 + r)^- T)/ r

Where

M = Periodic Payment = $230

T = Periods = 15

r = rate = 11% = 0.11

So, Amount of Deposit = 230(1 - (1 + 0.11)^-15)/0.11

Amount = 230(1 - (1.11)^-15)/0.11

Amount = 230 ( 1 - 0.209)/0.11

Amount = 230 * 0.791/0.11

Amount = 230 * 7.191

Amount = $1653.93

In this case payments are made at the beginning of each period

This means that the payments are an annuity due.

To compute the present value of an annuity due with periodic payment, we'll make use of the following formula

M((1 + r) - ( 1 + r) ^ ( 1 - T))/r

Amount = 230(( 1 + 0.11) - (1 + 0.11) ^ (1 - 15))/0.11

Amount. = 230((1.11 - 1.11^-14))/0.11

Amount = 230(1.11 - 0.232)/0.11

Amount = 230 * 0.878/0.11

Amount = 201.94/0.11

Amount = $1835.82

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2 years ago

When should a writer establish common ground before the bottom line statement

boyakko [2]

A writer should establish common ground before the bottom line statement <span>when the reader may disagree with the bottom-line statement.</span>

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2 years ago

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During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in consumer spending. Which

Ipatiy [6.2K]

C. A decrease in the money supply

Nearly 700 banks failed in waning months of 1929 and more than 3,000 collapsed in 1930. Federal deposit insurance was as-yet unheard of, so when the banks failed, people lost all their money. Some people panicked, causing bank runs as people desperately withdrew their money, forcing more banks to close. By the end of the decade, more than 9,000 banks had failed. Surviving institutions, unsure of the economic situation and concerned for their own survival, became unwilling to lend money. This exacerbated the situation, leading to less and less spending.

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2 years ago

Each of the following quality control policies and procedures is typical of ones that can be found in public accounting firms’ s

hammer [34]

Answer:

Quality Control Policies and Procedures and the Elements of Quality (SQCS 8):

1. Assign management responsibilities in such a manner that commercial considerations do not override the quality of work performed.

d. Human resources

2. Establish policies and procedures for resolving differences of opinion among firm personnel that arise during professional engagements.

a. Leadership responsibilities for quality within the firm (the tone at the top)

3. Develop policies and procedures to ensure that professionals are provided appropriate professional development opportunities.

d. Human resources

4. Review engagement documentation, reports, and the client’s financial statements.

f. Monitoring

5. Develop effective performance evaluation, compensation, and advancement procedures. Identify circumstances and relationships that create threats to independence and take appropriate action to eliminate those threats or reduce them to an acceptable level.

b. Relevant ethical requirements

6. Identify whether the firm possesses the competency, capability, and resources to appropriately serve a specific client.

c. Acceptance and continuance of client relationships and specific engagements

7. Devote sufficient resources to develop, communicate, and support the firm’s quality control procedures.

d. Human resources

8. Retain engagement documentation for a sufficient period of time to satisfy the needs of the firm, professional standards, laws, and regulations.

e. Engagement performance

Explanation:

According to SQCS 8, the firm must establish and maintain a system of quality control. The six elements of the system of quality control are:

a. Leadership responsibilities for quality within the firm (the tone at the top)

b. Relevant ethical requirements

c. Acceptance and continuance of client relationships and specific engagements

d. Human resources

e. Engagement performance

f. Monitoring

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1 year ago

Joanna is deciding between consuming Good X and Good Y. At her current level of consumption, her marginal utility per dollar for

ikadub [295]

Answer:

D) consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal.

Explanation:

Since Joanna's marginal utility per dollar is higher for good X than per good Y, then she must consume a combination of both goods until their marginal utility per dollar is equal.

Since marginal utility is diminishing, if she reduces her consumption of good Y, maybe it will increase and match X's. Or she can choose to consume more X until its marginal utility diminishes and matches Y's.

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2 years ago