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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 is an example of capital goods and how are they essential for businesses to produce goods and services efficiently?
An example of capital goods is machinery used in a factory. These goods are essential for businesses to produce goods and services efficiently because they help automate processes, increase productivity, and improve the quality of products. This ultimately leads to cost savings and higher profits for the business.
What is the concept of marginal cost of capital?
The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.
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
Which term refers to the cost a firm incurs labor?
Wages A+
Which term refers to the cost a firm incurs for labor?
Wages A+
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.
How do you find the cost of producing of capital goods in production possibilities frontier.the third unit of capital goods is 4.?
consumption goods for 3rd unit is 26 and for 4th unit is 0. what is the cost of prouding capilal goods of 3rd and 4th unit
What is the advantage and disadvantage of variation order?
Takes Time and incurs more cost
When computing the amount of interest cost to be capitalized in the concept of avoidable interest refers to?
a cost if capital charge for stockholder's equity
Is borrowing an explicit cost?
Borrowing itself is not considered an explicit cost; rather, it refers to the act of obtaining funds. Explicit costs are direct, out-of-pocket expenses that a business incurs, such as wages, rent, and utilities. However, the interest paid on borrowed funds is an explicit cost, as it represents a direct financial obligation. Thus, while borrowing facilitates access to capital, the costs associated with it, like interest payments, are what fall under explicit costs.
What is an example of capital goods and how are they essential for businesses to produce goods and services efficiently?
An example of capital goods is machinery used in a factory. These goods are essential for businesses to produce goods and services efficiently because they help automate processes, increase productivity, and improve the quality of products. This ultimately leads to cost savings and higher profits for the business.
Difference between carriage inward and freight inward?
Carriage inward refers to the transportation costs incurred by a business when purchasing goods from suppliers. It is added to the cost of inventory and increases the cost of goods sold. Freight inward, on the other hand, refers to the cost of transporting the goods purchased from suppliers to the buyer's location. It is also added to the cost of inventory but is not included in the cost of goods sold.
Is depreciation cost relevant in Outsourcing?
Only the total amount of a new machine is a relevant cost because this incurs in the future and incurs when a certain decision is made. The depreciation of old machines is a sunk cost so this is an unavoidable cost. The amount for the old machine you sell is a relevant cost because you will get this amount if you sell the old machine and buy the new one.
