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How is cost and benefits calculated?

Cost and benefits are calculated by quantifying the total expenses associated with a project or decision (costs) and the total gains or advantages it generates (benefits). Costs can include direct expenses, indirect expenses, and opportunity costs, while benefits can encompass both tangible and intangible returns. The net benefit is determined by subtracting total costs from total benefits, allowing for an assessment of the project's overall value. This analysis helps in making informed decisions by comparing alternatives and understanding the potential return on investment.


How are costs and benefits calculated in economics?

In economics, costs and benefits are calculated by evaluating the monetary value of resources used (costs) versus the monetary value of the outcomes or advantages gained (benefits) from a particular decision or action. Costs can include explicit expenses, opportunity costs, and externalities, while benefits may encompass direct revenues, utility, and any positive impacts on stakeholders. The net benefit, which is the difference between total benefits and total costs, helps determine the economic viability of a decision. This analysis often employs techniques like cost-benefit analysis to inform policy-making and resource allocation.


Which of the following is a critical rule for determining whether something is a public good?

The total benefits to society are greater tham the total cost.


What is the difference between shareholders' equity and book value in a company's financial statements?

Shareholders' equity represents the total value of a company's assets that belong to its shareholders, while book value is the value of a company's assets minus its liabilities as reported on the balance sheet. In essence, shareholders' equity is the total ownership interest in the company, while book value is a measure of the company's net worth.


What makes up total revenue?

Total revenue is made up of the total amount of money generated from sales of goods or services before any expenses are deducted. It is calculated by multiplying the price at which goods or services are sold by the quantity sold. Additionally, total revenue can include other income sources, such as interest, royalties, or fees, depending on the business model. Ultimately, it reflects the overall financial performance of a company in terms of its sales activities.

Related Questions

How is cost and benefits calculated?

Cost and benefits are calculated by quantifying the total expenses associated with a project or decision (costs) and the total gains or advantages it generates (benefits). Costs can include direct expenses, indirect expenses, and opportunity costs, while benefits can encompass both tangible and intangible returns. The net benefit is determined by subtracting total costs from total benefits, allowing for an assessment of the project's overall value. This analysis helps in making informed decisions by comparing alternatives and understanding the potential return on investment.


What is Global market sales?

Global market sales is the total amount of sales internationally. This total will include all sales where the company has a market or stock.


What are you looking for in total compensation?

Its different per company/country and can be different inside of one company and the different countries that company is in. However, in the US it is typically Base Salary + Short Term Incentives (Bonus) = Total Cash Compensation. Total Cash Compensation + Long Term Incentives (Stock, etc.) = Total Direct Compensation (aka Total Compensation) Other calculations can be used to determine and factor in health benefits, retirement, and other 'compensation'. But as mentioned, these calculations will be different in different countries, but the above calculations are standard.


What does total annual compensation include?

Total annual compensation would include base salary, any commission you would have made, any bonuses you would have received, and your health benefits package, i.e. medical and dental plan value.


What does previous employer total compensation means?

Previous Employer Total Compensation Refers to the total amount of money (Could include straight salary, bonus, value of benefits, 401k contributions) that was paid to you by your previous employer.


What is the difference between total assets and current assets in a company's financial statements?

Total assets include all of a company's assets, both current and non-current, while current assets are a subset of total assets that can be easily converted into cash within a year.


Does net sales include sales tax?

No, net sales do not include tax. It is the total amount of company sales after the deduction of returns, damaged goods and any discounts.


What is Adjusted Tangible Net worth?

totalasset less intangible assets and total outside liabilities ; also called net tangible assets. Intangible assets include nonmaterial benefits such as goodwill, patents, copyrights, and trademarks. total asset less intangible assets and total outside liabilities ; also called net tangible assets. Intangible assets include nonmaterial benefits such as goodwill, patents, copyrights, and trademarks.


Are there any benefits if both you and your wife have health insurance?

If both husband and wife are covered in health insurance policy, then they are entitled to a family discount the quantum of which vary from company to company and is deducted from the total premia amount.


How do you find the return on equity?

ROE=(Earning available for common stockholders)/(common stock equity)Return on Equity is a measure of the returns generated by every share of common stock of a company. High ROE does not mean any immediate benefits but an increasing ROE year-on-year means that the company is doing well and is able to grow on its profits.Formula:ROE = Net Income / No. of SharesNet Income - This is the total income of the company after paying preferred stock dividendsNo. of Shares - This is the total number of common shares in the market (Does not include Preferred Shares)


What are fringe benefits perks and compensation?

ANSWER Fringe benefits are a part of compensation. Compensation, typically refers to your total employment benefits package, which would also include your base pay/salary. Fringe benefits typically include non-monetary benefits (e.g. cell phone/blackberry, laptop, car, medical insurance coverage, membership to a health club, etc.). Fringe benefits also generally include a retirement plan. A specific breakdown would be: Fringe Benefits - Retirement, Medical, Dental, Vision, etc.; Perks - Cell phone/blackberry, laptop, car, housing allowance, health club membership, etc.; and Compensation - Base Salary, Overtime Pay, Annual Bonus, Holiday Pay, etc.Fringe Benefits Compensation to employees in addition to salary. Some examples of fringe benefits are paid holidays, retirement plans, life and health insurance plans, subsidized cafeterias, company cars, stock options, and expense accounts. In many cases, fringe benefits can add significantly to an employee's total compensation, and are a key ingredient in attracting and retaining employees. For the most part, fringe benefits are not taxable to the employee, though they are generally tax-deductible for the employer.****************************************************************** Compensation or other benefit provided by the employer to the employee at no charge that is above and beyond salary or wages. Examples include health plans, Cafeteria Plans, and life insurance.******************************************************************


What is the Equation for the net benefits?

Marginal net benefits= Marginal benefit- Marginal cost