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Is payment for leasing a building for the firm an implicit cost for a firm?
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What are freehold building?
These buildings have been acquired from the local authority/ private builders on payment of lumpsum amount which includes cost of land also.
Marias new house cost 235000 The down payment was 0.5 of the cost of the house How much was the down payment?
47.000
Discuss the problems of leasing in India?
Leasing has great potential in India. However, leasing in India faces serious handicaps which may mar its growth in future. The following are some of the problems.1. Unhealthy Competition:The market for leasing has not grown with the same pace as the number of lessors. As a result, there is over supply of lessors leading to competitor. With the leasing business becoming more competitive, the margin of profit for lessors has dropped from four to five percent to the present 2.5 to 3 percent. Bank subsidiaries and financial institutions have the competitive edge over the private sector concerns because of cheap source of finance.2. Lack of Qualified Personnel:Leasing requires qualified and experienced people at the helm of its affairs. Leasing is a specialized business and persons constituting its top management should have expertise in accounting, finance, legal and decision areas. In India, the concept of leasing business is of recent one and hence it is difficult to get right man to deal with leasing business. On account of this, operations of leasing business are bound to suffer.3. Tax Considerations:Most people believe that lessees prefer leasing because of the tax benefits it offers. In reality, it only transfers; the benefit i.e. the lessee's tax shelter is lessor's burden. The lease becomes economically viable only when the transfer's effective tax rate is low. In addition, taxes like sales tax, wealth tax, additional tax, surcharge etc. add to the cost of leasing. Thus leasing becomes more expensive form of financing than conventional mode of finance such as hire purchase.4. Stamp Duty:The states treat a leasing transaction as a sale for the purpose of making them eligible to sales tax. On the contrary, for stamp duty, the transaction is treated as a pure lease transaction. Accordingly a heavy stamp duty is levied on lease documents. This adds to the burden of leasing industry.5. Delayed Payment and Bad Debts:The problem of delayed payment of rents and bad debts add to the costs of lease. The lessor does not take into consideration this aspect while fixing the rentals at the time of lease agreement. These problems would disturb prospects of leasing business.
Where can one find a building cost calculator or estimator?
One can find a building cost calculator or estimator online at certain websites that provide services in calculation particularly with relevance to a building cost calculator or estimator.
What is the meaning of loan closing cost?
The loan closing cost is the final payment due after the term of payment of a load has expired and is usually a larger amount than the monthly amount which payable to the loaner.
Are depreciation charges implicit cost?
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
1 Explicit cost and Implicit cost are the two dimensions of cost What role does cost play in financial decisions?
Explicit cost and Implicit cost are the two dimensions of cost What role does cost play in financial decisions?
What is implicit cost of capital?
the opportunity cost or value of the best by a business
What is the average cost per square foot for leasing a commercial building in Cheyenne WY?
To lease a commercial building the average cost per square foot is between $16.00 to $20.00. Depending on what may need to be done to the building, such as insulation, the price can go up to $30 to $40 per square foot.
Example of implicit cost?
There is almost an implicit assumption that tutors know about these things.
Why accounting profit is higher than economic profit?
First of all, we need to understand what is explicit cost and implicit cost. Explicit cost mean real expenses, while implicit cost mean opportunity cost. In accounting profit, we only minus explicit cost, while in economic profit we minus explicit cost and implicit cost. therefore accounting profit is higher than economic profit.
What is the advantage of leasing Rims and Tires as opposed to buying them?
The only advantage would be the intitla cost is less when leasing rims and tires.
Auto lease Capitalized cost reduction?
The term, capitalized cost, or "cap cost", related to car leasing, means the amount that is being financed with a lease. Cap cost includes the negotiated price of the vehicle plus any add-on fees or taxes that will be financed (not paid in cash). In a loan, it would be called "financed amount." An acquisition fee is usually one of the extra charges included in a lease's capitalized cost. In some states, sales tax is charged up-front, and is usually added to lease cap cost (unless paid in cash). In lease contracts, this is usually called "gross capitalized cost." After "cap cost reductions" (see below) have been subtracted, it becomes "net capitalized cost." The fact that leasing is a form of financing is often misunderstood. Many people think of leasing as renting. It is not. Car leasing is also sometimes confused with apartment leasing/renting when, in fact, they are two very different things. Apartment leasing is renting; car leasing is financing, similar to a loan. The strange terminology of car leasing is a holdover from the days when leasing was used strictly for business equipment financing and commercial vehicle financing. Capitalized cost is one of those terms. Money factor, term, and residual value are others. In modern times, the language of consumer automobile leasing seems out of place and confusing. Some consumers believe the auto industry likes it that way. It doesn't look like it will change any time soon, so we need to understand it. The term, capitalized cost reduction, or "cap cost reduction," refers to any cash down payment, trade-in credit, or rebate amount that decreases, or reduces, the amount being financed (cap cost). It's the same as a down payment when buying with a loan, just a different name. Cap cost reduction is not a security deposit that you get back at the end of a lease. It's simply a form of prepayment of the amount owed on the lease, which serves to reduce the amount of the monthly payment. A cap cost reduction is sometimes required to get a specific promotional lease deal. It is also sometimes required if a customer has poor credit. The difference between net capitalized cost (gross cap cost minus cap cost reduction) and lease-end residual value determines the depreciation value of a lease, which is a major component of the formula that calculates monthly payment amount. Having a lownet cap cost and a high lease-end residual value creates the smallest difference (depreciation value) and, therefore, the lowest monthly payment. The best way to achieve a low depreciation value is to look for discounts and rebates on vehicles that hold their resale values (residual values) well. In this way, a relatively expensive vehicle can easily have a lower lease payment than a less expensive vehicle. Some people like to pre-pay their lease (single payment lease), to eliminate monthly payments altogether. Essentially, by increasing cap cost reduction by a large amount, depreciation value is reduced to zero. This has advantages and disadvantages. Read our article, Single Payment Leases for more details. Cap cost reduction is often confused with security deposit. Cap cost reduction is also only part of the up-front amount due at lease signing, which is often misunderstood. In summary, car lease capitalized cost is the amount financed, before capitalized cost reduction is subtracted. Capitalized cost reduction is an amount paid in cash, rebates, or trade-in credit. Cap cost reduction lowers monthly payment amount. It is not a deposit.
Why do economists bother with implicit cost?
Because opportunity cost doesn't show up as an accounting expense.
What is the cost of leasing land in So. Illinois?
I think that depends on what you are interested in leasing it for. What is your specific inquiry regarding -- hunting lease, farm lease, commercial?
What are freehold building?
These buildings have been acquired from the local authority/ private builders on payment of lumpsum amount which includes cost of land also.
How much does it cost to rent a 1500 sqftstore in monthly payment?
The cost to rent a 1500 squarefoot store in terms of monthly payment will depend on location and demand. The location of the building is a major factor because property prices are driven by demand in the area. A person's credit may also effect how much a monthly payment would be required.
