Answer:
the quantity of money growed to be 5%
Explanation:
The computation of the expected change in the quantity of money is shown below:
As we know that
Growth rate of money supply = Real GDP growth rate + inflation rate
= 2% + 3%
= 5%
Keeping the velocity be constant
Hence, the quantity of money growed to be 5%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
QUESTION 13
6 points
When writing marketing objectives they should be:
A. Realistic, Measurable, Time Specific, Compared to benchmark (smart-specific measurable attainable time
bound)
B. Aspirational, Measurable, Competitive, Unlimited
C. All of the above
D.None of the above
Tatum can borrow at 7.15 percent. The company currently has no debt and the cost of equity is 11.55 percent. The current value of the firm is $670,000. The corporate tax rate is 25 percent. What will the value be if the company borrows $385,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value of the firm __________
Answer:
$766,250
Explanation:
The value of the firm is calculated as follows:
Value of firm = Current value + (Borrowing *Tax rate)
Value of firm = $670,000 + ($385,000*25%)
Value of firm = $670,000 + $96,250
Value of firm = $766,250
The value of the firm will be $766,250 if it borrows $385,000 and uses the proceeds to repurchase shares.
If the French euro devalued by 17% against the U.S. dollar, this is equivalent to a revaluation of the dollar against the euro by:________.A) 17%B) 16.31%C) 20.48%D) 17.54%
Answer:
C) 20.48%
Explanation:
I will use an example to show this:
1€ = $1
if the euro depreciates by 17%, then the exchange rate will be 0.83€ = $1
in order for the euro to recover its previous value against the dollar, it needs to increase 0.17€ / 0.83€ = 0.2048 = 20.48%
in other words, a 17% depreciation is equivalent to a 20.48% revaluation.
The portfolio with the lowest standard deviation for any risk premium is called the_______. A.efficient frontier portfolio B.CAL portfolio C.global minimum variance portfolio D.optimal risky portfolio
Answer:
The right approach is Option C (global minimum variance portfolio).
Explanation:
A completely-invested portfolio with either a low uncertainty factor seems to be the GMV portfolio. This same GMV portfolio corresponds to or is situated mostly on the left end including its FI-efficient frontier. Although aside from either the full-investment requirement, no restrictions are enforced, the GMV portfolio deals for analytical portrayal.The latter options offered are not relevant to something like the scenario presented. So that is indeed the correct solution.
Banks and other financial institutions can grant a small business a _____, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand. a. mutual fund.b. line of credit.c. non-recourse loan.d. trust fund.e. trade credit.
Answer:
b. line of credit
Explanation:
line of credit can be regarded as credit facility that is been offered to customer as well as businesses so that when ever they need funds they can draw on it. Line of credit can be offered by the government, bank as well as individual. Line of credit gives room to customer for accessibility of funds anytime so far the limit has not been exceeded. It should be noted that a line of credit is an agreement by which a financial institution promises to lend a business a predetermined sum on demand,
The term learning organization is used to describe organizations in the educational
and nonprofit industries.
True or false
Answer: False
Explanation: The term "Learning organizations" can be defined as a place where people continue learning and expand their capacity to see the results they desire. According to Peter Sange, the one who coined the concept with his colleagues, Learning organization responds as a company that helps its employees to learn more.
Blue Spruce Corp. started the year with total assets of $304000 and total liabilities of $244000. During the year the business recorded $630000 in revenues, $325000 in expenses, and dividends of $61000. The net income reported by Blue Spruce Corp. for the year was:_____________
Answer:
$305,000
Explanation:
Net income is the amount of money available to a company after the deduction of expenses from revenue. It is calculated as;
Net income = Revenues - Expenses
Given that;
Revenues = $630,000
Expenses = $325,000
Net income = $630,000 - $325,000
Net income = $305,000
Therefore the net income reported by Blue Spruce Corp. For the year is $305,000
Yeats Corporation's sales in Year 1 were $396,000 and in Year 2 were $380,000.Using Year 1 as the base year,the percent change for Year 2 compared to the base year is:_________.A) −104%B) 100%C) −4.0D) 96%E) 4.2%
Answer:
The correct option is C) −4.0%.
Explanation:
Since Year 1 is said to be used as the base year, the percentage change can bee calculated using the following formula:
Percent change = ((Sales in Year 2 - Sales in Year 1) / Sales in Year 1) * 100 ........... (1)
Where;
Sales in Year 1 = $396,000
Sales in Year 2 = $380,000
Substituting the values into equation (1), we have:
Percent change = (($380,000 - $396,000) / $396,000) * 100
Percent change = (−$16,000 / $396,000) * 100
Percent change = −0.0404040404040404 * 100
Percent change = −4.04040404040404%
Approximating to one decimal place, we have:
Percent change = −4.0%
Therefore, the percent change for Year 2 compared to the base year is -4.0% and the correct option is C) −4.0%.
If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used. Select one: True O False
Answer: True.
Explanation:
A shirt manufacturer buys cloth by the 100 yard roll from a supplier. For setting up a control chart to manage the irregularities (e.g., loose threads and tears) the following data was collected from a sample provided by the supplier.
a. Determine the c¯ , Sp, UCL and LCL for a c -chart with z = 2. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)
Answer: see attachments
Explanation:
For a c -chart with z = 2 (irregularities in 10 samples) ; c¯ = 4.3, SP = 2.07, UCL = 8.45, LCL = 0.15.
What do you mean by Sample?A sample is a condensed, controllable representation of a larger group. It is a subgroup of people with traits from a wider population.
Calculate the average irregularities per sample
Total irregularities in 10 samples = 43
No of samples = 10
Average irregularities / sample c¯ =43/10 = 4.3
This is the center line of the control chart denoted by
Sp = sqrt(4.3) = 2.07
Assuming Z value for control chart = 2; Since this is not mentioned here
UCL = 4.3 + z
UCL = 4.3 + 2*
UCL = 8.45
LCL = - z
LCL = 4.3 - 2*
LCL = 0.15
Therefore, c¯ = 4.3, SP = 2.07, UCL = 8.45, LCL = 0.15.
Learn more about Sample, here;
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how to get money fast
Answer:
social media
Explanation:
nothing social media cant do , put up ads or fliers for ur buisness, along with a side job . have friends promote whatever your doing, make a website. do something that draws audience attention.
List what you are thankful for! (((It's Thanksgiving (here)! Answer if you bake! Or if you like cakes pies cookies and treats!!!! )
Answer:
Family
Explanation:
HEY PLS DON'T JOIN THE ZOOM CALL OF A PERSON WHO'S ID IS 825 338 1513 (I'M NOT SAYING THE PASSWORD) HE IS A CHILD PREDATOR AND A PERV. HE HAS LOTS OF ACCOUNTS ON BRAINLY BUT HIS ZOOM NAME IS MYSTERIOUS MEN.. HE ASKS FOR GIRLS TO SHOW THEIR BODIES AND -------- PLEASE REPORT HIM IF YOU SEE A QUESTION LIKE THAT. WE NEED TO TAKE HIM DOWN!!! PLS COPY AND PASTE THIS TO OTHER COMMENT SECTIONS!!
Jane has always made budgets for herself. She plans her expenses according to her budget. However, despite creating plans, some unforeseen circumstance often puts her off the budget. Which course of action should Jane follow to prepare herself for unforeseen circumstances and stay on a budget?
A. Follow the plan strictly at any cost
B. Create an emergency fund
C. Follow the same plan
D. Tweak her financial goals
Answer:
C.
Explanation:
Sana makatulong
Answer:
B
Explanation:
Having an emergency fund will help cover unexpected costs.
A major advantage of the weighted average method of inventory costing is that:_________ a. cost flows correspond with the physical flow of merchandise. b. it matches current costs with revenues. c. recent costs are assigned to the ending inventory balance. d. it is relatively easy to apply.
Answer:
The answer is "Option d".
Explanation:
In the inventory costing method, the actual cost is fixed to an identifiable product segment with using the weighted average method, the prices of its products for sale are divided into the number of products still in the store. Its mean weight of each component was calculated with this calculation. Its mean value consists of the sum of all factors multiplied by mass and instead divided by mass sum.
Under certain conditions, the Coase theorem asserts that the property right to an activity will be acquired by the party that values it most. What are the two implications of the Coase theorem that are listed in the chapter? (Check only two.) A. Legal constraints will not affect the outcome. B. The outcome will result in the rights to an activity going to the party that deserves them the most C. The outcome will result in the largest possible economic pie for society to enjoy. D. Bargaining will be efficient since transactions costs are eliminated.
Answer:
The correct answers are the options:
B) The outcome will result in the rights to an activity going to the party that deserves them the most
D) Bargaining will be efficient since transactions costs are eliminated.
Explanation:
To begin with, the concept that is name as "Coase Theorem" is famously known in the microeconomics theory as the statement that describes the economic efficiency of an outcome that involves externalities. Moreover, it indicates that if a trade between two private parties is possible and the transactions costs are low, then it all will end up in a Pareto efficiency situation in where the party that it deserves the most will be benefit himself from that. However the theorem is just that, a theorem, it is very difficult to be applicable for the real life economics due to the fact that in real life the transactions costs are rarely low enough.
The Toyota Mirai is a prime example of advanced technology. However, there are no refueling stations available or planned in the Midwest, so to someone in Michigan, the Mirai would be a poor purchase. This is an example ofa) quality being defined by the buyer.b) poorly designed technology.c) the market not wanting advances in technology.d) a product designed for all markets.e) a product being of low-quality
Answer:
The correct answer is the option C: the market not wanting advances in technology.
Explanation:
To begin with, the fact that the new product is an example of advanced technology it does not exactly engages in the fact that it will work in every market that it will be launched. That is the example presented in the case, the new product is so good but the market where it launched it was not ready yet for its arrival and that is because it did not have the refueling stations so that implicates that if there are not those stations then the demand of that type of cars is not enough and therefore the market is not wanting that kind of advances in technology so that is why that to someone in Michigan the Mirai would be a poor purchase.
A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
Required:
a. Prepare a projected CVP income statement for 2020, assuming the changes have not been made.
b. Prepare a projected CVP Statement 2020, assuming that changes are made as described.
Answer:
Missing words "Carey Company had sales in 2016 of $1,586,000 on 61,000 units. Variable costs totaled $854,000, and fixed costs totaled $450,000"
a. Particulars Total Amount($) Per Unit in ($)
Sales 1,586,000 26
Less: Variable cost 854,000 14
Contribution Margin 732,000 12
Less: Fixed cost 450,000 -
Profit 282,000
b. Sales = 61000 + 5% = 61000 + 3050 = 64050 units
Sales price = $26 - ($2.8/2) $1.4 = $24.6
Variable price = $14 - $2.8 = $11.2
Fixed cost = 450000 + 90000 = 540000
Particulars Total Amount($) Per Unit in ($)
Sales 1,575,630 24.6
Less: Variable cost 717,360 11.2
Contribution Margin 858,270 13.4
Less: Fixed cost 540,000 -
Profit 318,270
With this new plan, the profit increases by $26,270 ($318,270 - $282,000)
Tommy, a teenage boy who earns money mowing lawns, observed that Thacker nearby property had become overgrown. Tommy decided to cut Thacker lawn for a reduced fee to encourage Thacker to become a regular customer. While mowing, Tommy saw Thacker come to the front window and wave from inside the house. Tommy returned Thacker’s wave and continued mowing. Upon completion of the job, Tommy knocked on the front door of Thacker’s home, expecting payment. Thacker refused to answer the door and shouted down from an upper story window: "I did not request you to cut my lawn and now you want me to pay you!"
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
B. An express contract was formed.
C. Both A and B.
D. No contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
A. Personal opinion.
B. Invitation to bid.
C. Product promotion advertisement.
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
A. Money/consideration to be paid.
B. Identification of the object or contract subject matter.
C. Description of parties.
D. All of the above.
4. Which is nota way that an offer can be terminated by action of the parties?
A. Offeror revokes (withdraws) offer after offeree’s acceptance.
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
C. The offeree rejects the offer.
D. The offeree counteroffers.
Answer:
1. Which might be Tommy’s best argument to collect from Thacker?
A. An implied contract was formed.
2. Which is an example of a situation where intent to make an offer may be lacking?
D. All of the above.
3. Which is an example of a material (essential) term required to be included in an enforceable contract?
D. All of the above.
4. Which is not a way that an offer can be terminated by action of the parties?
B. Offeror performs acts inconsistent with the existence of the offer (e.g., transacts the same business with a different offeree).
Explanation:
The contract existing between Tommy and Thacker can be implied or express. The legally-binding obligation that derives from the actions, conduct, or circumstances of Tommy and Thacker creates an implied contract with the same legal force as an express contract. On the other hand, an express contract is voluntarily entered into and agreed on verbally or in writing by two or more parties.
On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.
Answer:
$18,800
Explanation:
The amortization expense can be calculated by dividing the cost of copyright to purchase by the estimated useful life and then multiplied by the number of months covered until May 1, 2017.
Amortization expense = Cost to purchase / Estimated useful life) x 8/12 Amortization expense = ($112,800 / 4 years) * 8/12
Amortization expense = $18,800
As the copyright is purchased on may 1 it will cover 8 months till 31 december 2017
Coronado Industries is purchasing new equipment with a cash cost of $189200 for the assembly line. The manufacturer has offered to accept $46000 payments at the end of each of the next six years. What is the interest rate that Coronado Industries will be paying? a) 10%. b) 12%. c) 11%. d) 13%.
Answer:
The correct option is b) 12%
Explanation:
Note: See the attached excel for the interest calculation.
In the question, we are given the following:
Equipment cash cost = $189,200
Yearly payment = $46,000
Number of years = 6
The above are used in the attached excel file to calculate the interest rate.
The interest rate is calculated using the following simple excel rate function in the attache excel file:
=RATE(npr,pmt,-pv)
Where;
pv = Present value = Equipment cash cost = $189,200
pmt = Yearly payment = $46,000
npr = Number of years = 6
Using the function in the attached excel file, we obtained 12%. Therefore, the correct option is b) 12%.
Kapoor Company uses job-order costing. During January, the following data were reported:
a. Materials purchased on account: direct materials, $98,500; indirect materials, $14,800.
b. Materials issued: direct materials, $82,500; indirect materials, $8,800.
c. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.
d. Other manufacturing costs incurred (all payables), $46,200.
e. Overhead is applied on the basis of 110 percent of direct labor cost.
f. Work finished and transferred to Finished Goods Inventory cost $230,000.
g. Finished goods costing $215,000 were sold on account for 140 percent of cost.
h. Any over- or underapplied overhead is closed to Cost of Goods Sold.
Required:
1. Prepare journal entries to record these transactions.
2. Prepare a T-account for Overhead Control. Post all relevant information to this account. What is the ending balance in this account?
3. Prepare a T-account for Work-in-Process Inventory. Assume a beginning balance of $10,000, and post all relevant information to this account. Did you assign any actual overhead costs to Work-in-Process Inventory? Why or why not?
Answer:
Required 1
a.
Direct materials $98,500 (debit)
Indirect materials $14,800 (debit)
Trade Payable $113,300 (credit)
b.
Work in Process : direct materials $82,500 (debit)
Work in Process : indirect materials $8,800 (debit)
Direct material $82,500 (credit)
Indirect material $8,800 (credit)
c.
Work In Process: direct labor $67,000 (debit)
Work In Process: indirect labor $18,750 (debit)
Salaries Payable $85,750 (credit)
d.
Overheads $46,200 (debit)
Trade Payables $46,200 (credit)
e.
Work in Process $73,700 (debit)
Overheads $73,700 (credit)
f.
Finished goods Inventory $230,000 (debit)
Work in Process $230,000 (credit)
g.
Trade Receivable $301,000 (debit)
Cost of goods sold $215,000 (debit)
Inventory $215,000 (credit)
Sales Revenue $301,000 (credit)
h.
Overheads $27,500 (debit)
Cost of Sales $27,500 (credit)
Required 2
Overheads Account
Debit :
Trade Payables $46,200
Over- applied $27,500
Total $73,700
Credit :
Work in Process $73,700
Total $73,700
Required 3
Work In Process Account
Debit :
Beginning balance $10,000
Direct material $82,500
Direct labor $67,000
Overheads $73,700
Total $233,200
Credit :
Finished goods Inventory $230,000
Ending Balance $3,200
Total $233,200
Why use applied overheads instead of actual overheads
We assign applied overheads to Work-in-Process Inventory. This is because the actuals are usually not readily available to costs the products and determine selling prices. The actuals are available later during the end of the period and using these, we would delay the product costing and pricing seasons.
Explanation:
Required 1
Theses are journal entries. Accumulate the production costs in the Work In Process Inventory Account. When units are completed, the cost from the Work In Process to the Finished Goods Account.
Required 2
This is the overheads Account. On the debit side of this account we record the overheads actually incurred during the production period. On the credit side we record the overheads applied. The balance of this account is either overapplied (debit) or under-applied (credit). In our case, we had an overapplied situation (debit).
Required 3
This is the Work-in-Process Account. Make sure to include the applied overheads instead of actual overheads.
How did the Medici get around the usury laws?
Answer:
they were very large nd rich family.so they used foreign exchange rate to make money
Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. Doing this helps Toyota manage the ______ of industrial demand.
a. volatility
b. division
c. durability
d. development
Answer:
a. volatility
Explanation:
From the question, we are informed that "Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, trucks, and SUVs. In case of Doing this it helps Toyota manage the volatility of industrial demand.
volatility of industrial demand do occur where there is uncertainty as far as demand is concerned in the consumer products , as a result of this most firms to catch up with compitition, growing their sales an lot more , so in this case Toyota still continues to manufacture its traditionally fueled cars, trucks, and SUVs even though there is Mirai for the U.S. market.
Allocative efficiency is achieved when:____.a. there are no shortages or surpluses in the market. b. goods and services are fairly distributed among consumers in an economy. c. firms produce goods and services at the lowest cost. d. firms produce the goods and services that consumers value most.
Answer:
The correct answer is the option A: there are no shortages or surpluses in the market.
Explanation:
To begin with, the concept known as "Allocative Efficiency" in the microeconomics theory refers to the state where all the goods and services that are offered by the suppliers are all consumed by the buyers at the market and therefore that there are no shortages or surpluses in there. Moreover, this theory represents the situation where the last unit produced by the suppliers provides a marginal benefit to the consumers that equals to the marginal cost of producing that last unit. So that is why that is achieved when the market is empty.
can yall plz help me with this science qustion the choses are masses,shapes,and sizes ....also ill give brainlest
Answer:
the answer is the mass.
Answer:
the answer is the mass
the answer is the mass
Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:_______. Cash $70,200 Short-term investments 12,800 Accounts receivable 49,500 Inventory 242,000 Prepaid expenses 18,000 Accounts payable 100,500 Other current payables 28,000a. 3.05 and 1.03. b. 2.91 and .97. c. 1.17 and 3.91. d. .97 and 3.05.
Answer:
a. 3.05 and 1.03
Explanation:
The formula for current ratio is
= Current assets/Current liabilities
= (Cash + Short term investment + Accounts receivable + Inventory + Prepaid expenses) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500 + 242,000 + 18,000) / (100,500 + 28,000)
= 392,500 / 128,500
= 3.05
The formula for Acid test ratio is
= Quick Assets / Current liabilities
= (Cash + Short term investment + Accounts receivable) / (Accounts payable + Other current payables)
= (70,200 + 12,800 + 49,500) / (100,500 + 28,000)
= 132,500 / 128,500
= 1.03
Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1909. It is now 2016.
Required:
a. If someone invested $1,000 in 1909, how much would that investment be worth today?
b. If an investment from 1903 has grown to $1 million, how much was invested in 1903?
c.
Answer:
a. If someone invested $1,000 in 1909, the investment's worth today is $185,035.48
b. If an investment from 1903 has grown to $1 million, the amount invested in 1903 is $4,032.82
Explanation:
a) FV (Future Value) $185,035.48
PV (Present Value) $1,000.00
N (Number of Periods) 107.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $1,000.00
Total Principal $1,000.00
Total Interest $184,035.48
b) You will need to invest $4,032.82 at the beginning to reach the future value of $1,000,000.00.
FV (Future Value) $999,999.00
PV (Present Value) $4,032.82
N (Number of Periods) 113.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $4,032.82
Total Principal $4,032.82
Total Interest $995,966.1
Sudoku Company issues 26,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $230,000 and the building at $374,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Answer:
Dr Land 230,000
Dr Building374,000
Cr Common stock $7 par value 182,000
Cr Paid-in capital in excess of parvalue, common stock 422,000
Explanation:
Preparation of the journal entry to record issuance of the stock in exchange for the land and building.
Dr Land 230,000
Dr Building374,000
Cr Common stock $7 par value 182,000
(26,000 shares x $7 par)
Cr Paid-in capital in excess of parvalue, common stock 422,000
Calculation for Paid-in capital in excess of par value, common stock
Paid-in capital in excess of par value, common stock=(230,000 + 374,000) – 182,000
Paid-in capital in excess of par value, common stock=604,000-182,000
Paid-in capital in excess of par value, common stock= 422,000
BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered?
a) $130.65 million
b) $150 million
c) $165.42 million
d) $172.22 million
e) $185 million
Answer:
d) $172.22 million
Explanation:
given data
equity = 70 %
debt = 30 %
flotation costs equity = 15 %
flotation costs debt = 8 %
BBQ = $150 million
solution
first we get here weighted average flotation cost that is express as
weighted average flotation cost = ( Flotation cost debt × Weight debt ) + ( Flotation cost equity × Weight equity ) .................1
put here value and we get
weighted average flotation cost = (8% × 0.30) + (15% × 0.70)
weighted average flotation cost = 0.024 + 0.105
weighted average flotation cost = 0.129 = 12.9%
and
now we get here cost of funds that is express as
Cost of funds = Amount raised ÷ (1 - Weighted average floatation cost) .............2
put here value we get
Cost of funds = [tex]\frac{150,000,000}{1-0.129}[/tex]
Cost of funds = [tex]\frac{150,000,000}{0.871}[/tex]
Cost of funds = $172,215,844
so correct answer is d) $172.22 million
Which of the following would be an example of an implicit cost?
(i)
forgone investment opportunities
(ii)
wages of workers
(iii)
raw materials costs
Group of answer choices
Answer:
(i) forgone investment opportunities
Explanation:
Implicit costs are the same as the opportunity costs of using a company's resources. There are the foregone benefits of not investing in project B but opting for project A. Implicit costs are associated with the resources that a business already owns.
Implicit costs are used to calculate the economic value of a project. They help managers assess how best to use the available resources. Wages of workers and raw materials costs represent explicit costs, which are direct materials of a project.