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Retained earnings have an opportunity cost associated with them because they can be invested to earn more rather than keeping them idle. For example reatined earnings can be invested in a savings account in a bank and earn interest but if this is not done the are loosing some extra income and so if they are invested somewhere else, the bank rate will be the opportunity that has been lost. Opportunity cost is the real cost of choosing one thing and not another.
What else can I help you with?
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
Define opportunity and explain three approaches to opportunity identification?
Approaches to opportunity identification include market gap identification through evaluation of potential competitors. Buying into an existing venture
Define opportunity cost and explain its relationship to comparative advantage?
Opportunity costs is the highest valued alternative that must be given up to engage in an activity. Comparative advantage is the ability of an individual, a firm, or an country to produce a good or service at a lower opportunity cost than competitors.
Draw a production possibility curve and use it to explain scarcity choice and opportunity cost?
Production Possibility Curve this is an image of a ppf/ ppc
What best explain why considering opportunity costs is a rational thing for consumers to do?
What you sacrifice for a decision is one of the non-monetary costs of many choices.
Which factors would explain an increase in retained earnings?
INFLATION
What are the four financial statements explain their basic content and why it is important that the statements are prepared?
balance sheet,income statement,cash flow statement,retained earnings
What accounts do not appear on the balance sheet worksheet?
The most common ones are Revenue (income) and Expenses. These accounts are closed out (because they are temporary) and affect the Net Income which in turn affects Retained Earnings, which is listed on the Balance Sheet. To try and explain "why" is because temporary accounts are used to figure either Net Profit or Net loss. They are closed out leaving them with a balance of $0. At the end of the period in which we choose (usually monthly for income) we We close out our expense accounts in order to figure our monthly Net Profit or Loss. Revenue and Expenses affect only our Income Statement and our Statement of Retained Earnings.
What are te may or disadvantage associated with HIV seeds explain?
what are te may or disadvantage associated with HIV seeds explain
Identify and explain seven problems associated with cooperative auditing in Nigeria?
Identify and explain the problems that are associated with cooperative auditing in Nigeria
Explain with the help of production possibility diagram the concept of opportunity cost?
Opportunity cost is the amount you might lose if you do not take the opportunity. You can write out the graph or find examples online.
Define opportunity and explain three approaches to opportunity identification?
Approaches to opportunity identification include market gap identification through evaluation of potential competitors. Buying into an existing venture
How do you explain the types of planning in Management concepts?
Explain the various type of planing. It is associated with research.
The UAE population is becoming increasingly diverse Explain how could this phenomenon be a threat as well as an opportunity for marketers?
answer me the question please. The U.A.E. population is becoming increasingly diverse. Explain how could this phenomenon be a threat as well as an opportunity for marketers?
Explain the style of performance which is usually associated with slapstick?
boogieing
Explain why gross earnings not net pay is debited to the salaries expense account?
Gross earnings are deducted from the salaries expense rather than the net pay because the amounts withheld are liabilities to the company and get paid every quarterly period.
Explain how rapidly expanding sales can drain the cash recourses of a firm?
A firm's sales may expand as a result of increase in orders, which requires the firm to increase its inventory by purchasing raw material whose payments must be made prior to cash collection from its customers. Thus, the firm has to use either its retained earnings or take on debt to finance the expansion which may result to a negative cash flow
