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Cash expenditures a firm makes to pay for resources are called?
Explicit costs
Economic function of profits and losses?
Economic profit will never exceed accounting profit. The accountant will calculate total cost using only explicit costs (basically a transfer of money) that the firm makes. On the other hand, .
What are examples of total costs?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
Does Automation results in a shift away from variable costs toward more fixed costs?
Well you can say that. Because with automation there would be more and more use of machines which form the fixed cost and it would lead to retrenchment of employees which contribute to the variable costs of the firm..
How much money does a tax attorney make?
It depends on the size of the firm one works at.
Who receives money in a firm?
Someone who receives money in a firm is called a treasurer
A firm's opportunity costs of using resources provided by the firm's owners are called what?
equity financing
What Business risk is affected by a firm's operations Which of the following is NOT directly associated with or does not directly contribute to business risk?
The exted to which operation costs are fixed
Cash expenditures a firm makes to pay for resources are called?
Explicit costs
What do capacity costs allow a firm to do?
Capacity costs (committed costs) give a firm the capability to produce or to sell,
Are those costs which firm has no control?
Costs which are affected by inflation
What categories of costs combine to create a firm's total cost?
A firm adds its fixed costs and capable costs to determine its todal cost at each level of output.
The amount of money that a firm pays to buy inputs is called?
Total cost
Firm A one firm in a competitive industry faces higher costs of production As a result conusmers end up paying higher prices Discuss?
If a firm is having higher costs than another in the same industry, they will pass the costs to the consumer. That has to happen if the firm is supposed to make any profits.
How would you describe fully absorbed costs?
Fully absorbed costs refer to costs where the firm has allocated fixed manufacturing costs to products produced or divisions within the firm as required by generally accepted accounting principles.
What is a cost structure?
The expenses that a firm must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed costs to variable costs.
When a firm's revenues rise more quickly than its costs?
Hopefully, the firm makes a profit.
