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HCAD 770 Exam 1 Questions and Answers

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HCAD 770 Exam 1 Questions and Answers

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HCAD 770 Exam 1




Accounting Profit - Answer-= total revenue - total explicit costs



economic profit - Answer-=total revenue-total opportunity costs (sum of explicit & implicit cost)



Business value - Answer-= the firm's total revenue- all taxes & the "cost of revenue"



management value-added - Answer-business value added - sum of operating expenses, management
costs & shareholder value-added



ROM - Answer-management value / G&A costs



nominal - Answer-current - reported "as is" w/ no adjustment for inflation



real - Answer-constant - the effects of inflation have been removed



economic profits include... - Answer-implicit costs

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