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Wages A+
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Which term refers to the cost a firm incurs labor?
Wages A+
The cost of a firm that vary with the level of production are called?
variable cost
Which cost amounts can be found in a firm's accounting records?
sunk cost
Is it true that Retained earnings have no cost to the firm?
Yes
Is it common for a service company to charge eighteen percent on everything even their labor?
No. 18% is very low. Most companies will want to make 35 - 50% Gross Profit on parts and 65 - 80% on labor. So you would charge $100 for a part which costs $60; and charge $100 for an hour's labor when you pay the employee $25/hr. Even a law firm or accounting firm will mark up labor by more than 18%, although their gross profit on labor (hours) will not be as high as other industries.
Which term refers to the cost a firm incurs labor?
Wages A+
What term refers to the cost a firm incurs for capital goods?
Interest
Which term refers to the cost a firm incurs for capital goods?
interest
Which term refers to the cost of a firm incurs for capital goods?
Interest
What happens if a company over invests in net working capital?
If a firm over invest in net working capital, it incurs cost in the form of opportunity cost.
What demand curve indicates the firm incurs a loss?
It's when the MR is not equal to MC. The firm in this case is unable to produce output the equals marginal revenue to marginal cost.
When the firm attains minimum average variable cost how many units of labor is it using?
When a firm attains minimum average variable cost, the number of units of labor it is using depends on the average product.
What is labour intensity?
Labor intensive refers to the combinations of factor inputs for a firm. If a firm produces a good that is labor intensive it means that the number of units of labor is high relative to the number units of capital (or whatever other factor of production there is). For example, education and teaching is very labor intensive, as the teaching field needs a lot of people to educate and handle the administration of education. It is also not likely that the teaching sector will not shift to ever be capital intensive. Any firm that produces a good that is intensive in any factor is vulnerable to shocks or changes in the cost of that factor. If the price of labor increases it will greatly hinder the ability the firm's ability to produce that good.
How can firm increase efficiency labor?
60 %
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
Under what condition should a firm continue to produce in the sort run if it incurs losess at the best level of out put?
if it's losses are smaller than its fixed costs
What is the difference between real cost and opportunity cost?
Actual cost (real cost): Are those which are actually incurred by the firm in payment for labor, material, plant, building, machinery, equipment ,etc. Opportunity cost: The opportunity cost is the opportunity lost. An opportunity to make income is lost because of scarcity of resources like land, labor, capital etc., or the making of one decision over another decision.
