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What is the term for the costs that come from the use of the owner's own resources and therefore are not actually paid out in money?
The term for these costs is "opportunity costs." Opportunity costs represent the potential benefits an individual or business misses out on when choosing one alternative over another. They reflect the value of the next best alternative that is forgone, rather than direct monetary expenses.
What else can I help you with?
Calculate the firm's daily cash operating expenditure. If the firm pays 14 percent for resources by how much?
To calculate the firm's daily cash operating expenditure, you need to know the total daily operating costs. If the firm pays 14 percent for resources, you would multiply the total operating costs by 0.14 to find the amount spent on resources. For example, if the daily operating costs are $1,000, the expenditure on resources would be $140. Therefore, the firm's daily cash operating expenditure includes this resource cost along with other operating expenses.
Firms with a high degree of operating leverage are?
Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.
What is Running cost?
Running costs in are associated with companies and businesses. The running costs are simply the amount of money needed to make the company "run". Running costs include staff payment, electricity costs and resources etc. Running costs are the cost for day-to-day running of the business
What does revenue mean in math?
The revenue is the amount of money a company actually recieves. It is the the number before costs are subtracted.
How affect the money of a project?
The money of a project affects its feasibility, scope, and overall success. Sufficient funding enables the acquisition of necessary resources, hiring skilled personnel, and covering operational costs, which directly impacts project quality and timelines. Conversely, limited financial resources can lead to compromises in quality, delays, or even project failure. Therefore, effective budget management is crucial for achieving project objectives and delivering value.
A firm's opportunity costs of using resources provided by the firm's owners are called what?
equity financing
What does costs nothing mean?
it is actually saying that courtesy cannot be paid. It can only be made by you. It costs you nothing to be polite -- therefore, why should you be rude?
Why manufacturers locate near resources?
Transportation of resources means costs. So - if resources are near your manufacturing plant - your costs are lower - your incomes are higher.
How are the costs of using renewable resources to the costs of using nonrenewable resources similar?
The costs of using renewable and nonrenewable resources can both include initial investment, operational expenses, and maintenance costs. Additionally, both types of resources may incur external costs, such as environmental impacts or regulatory compliance. However, renewable resources often have lower long-term operational costs due to their sustainability and decreasing technology costs, while nonrenewable resources may face rising extraction and environmental remediation costs over time. Ultimately, both types of resources require careful economic consideration to balance immediate and long-term expenses.
What does courtesy cost nothing mean?
it is actually saying that courtesy cannot be paid. It can only be made by you. It costs you nothing to be polite -- therefore, why should you be rude?
Calculate the firm's daily cash operating expenditure. If the firm pays 14 percent for resources by how much?
To calculate the firm's daily cash operating expenditure, you need to know the total daily operating costs. If the firm pays 14 percent for resources, you would multiply the total operating costs by 0.14 to find the amount spent on resources. For example, if the daily operating costs are $1,000, the expenditure on resources would be $140. Therefore, the firm's daily cash operating expenditure includes this resource cost along with other operating expenses.
Why are some budgeted costs based on actual costs from the previous years?
Some budgeted costs are based on actual costs of the previous year, information from supervisors about where resources might be more efficiently used, and subjective judgments about how much should be allowed for resources.
What is the imbalance between unlimited wants and limited resources available to satisfy those wants called?
the problem of scarcity - resources are scarce, wants are unlimited, therefore people are faced with opportunity costs (forgoing wants because they can only achieve some of their wants)
What do you do when marginal costs exceeds marginal revenue?
When MC>MR, then there is an overallocation of resources. This usually happens with a negative externality. The government tries to taxes these businesses so that they will produce less. Therefore, a way to fix overallocation of resources is to tax that company and reduce their output.
Compare the costs of using renewable resources to the costs of using nonrenewable resources.?
While the initial costs of setting up renewable energy sources like solar or wind may be higher, the operational costs tend to be lower compared to nonrenewable resources like coal or oil. Additionally, renewable resources have a lower environmental impact and can be more sustainable in the long term. On the other hand, nonrenewable resources have volatile prices that can fluctuate based on global supply and demand.
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
What hidden costs are nor included in GNP?
Hidden costs that are sometimes included in the GNP include costs for depletion of resources, advertising, auto accidents and commuting.
