Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost. The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good. To determine: The comparison of cost and benefit in different units and goods.

Question

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Answer 1

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Scenario one: Under what circumstances would it be appropriate for a firm to use different cost of capital for its different operating divisions? If the overall firm WACC was used as the hurdle rate for all divisions, would the riskier division or the more conservative divisions tend to get most of the investment projects? Why? If you were to try to estimate the appropriate cost of capital for different divisions, what problems might you encounter? What are two techniques you could use to develop a rough estimate for each division’s cost of capital?

Scenario three: If a portfolio has a positive investment in every asset, can the expected return on a portfolio be greater than that of every asset in the portfolio? Can it be less than that of every asset in the portfolio? If you answer yes to one of both of these questions, explain and give an example for your answer(s). Please Provide a Reference

Hello expert Give the answer please general accounting

Answer 2

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 3

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 4

Question

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

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Answer 5

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

Answer 6

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.

Conclusion

Thus, to compare cost and benefit in a different unit or goods one needs to quantify their values in equivalent terms.

Answer 7

Chapter 3, Problem 1CC

Summary Introduction

Cost of good: Cost of good includes the cost of material, cost of production and cost of transportation. The total amount of money which is spent on producing a particular good is its cost.

The benefit of good: When the selling price of a good is more than its cost, the difference in amount is called a benefit or profit of good.

To determine:

The comparison of cost and benefit in different units and goods.

Answer 8

Expert Solution & Answer

Answer to Problem 1CC

One needs to quantify the values of cost and benefit in equal terms of cash today when they are in different units or good. The market price of units or goods must be known for comparison.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

For Example, A offers B ten ounces of silver in return for five ounces of gold. It is incorrect for A to accept ten ounces of silver without knowing respective prices of both gold and silver in the market. If the market price of silver is $60 per ounce and that of gold is $140 per ounce, B can calculate the benefit that will be received after accepting silver and can calculate the cost that will be incurred after giving gold. The benefit that B will receive in this case is $600 and the cost that will be incurred is 700. Now B can easily take a decision by comparing cost and benefit of the proposal.