What are monetary and non-monetary costs?

that which it costs a consumer, other than money, to buy a product; the non-monetary price of purchasing a product includes the time devoted to shopping for it and the risk taken that it will deliver the expected benefits.

What is monetary cost of a product?

Monetary value is value in currency that a person, business, or the market places on a resource, product, or service. In fact, most goods and services in our modern economy are priced based on monetary value.

What are examples of non-monetary costs?

Types of non-monetary costs

• Time costs. Most services require direct participation of the consumer and thus consume real-time: time waiting as well as the time when the customer interacts with the service provider (Zeithaml, 1996).
• Search costs.
• Convenience costs.
• Psychological costs.

Is monetary cost an opportunity cost?

Opportunity cost is defined by the following: The opportunity cost is the value of the best forgone alternative. This definition emphasizes that the cost of an action includes the monetary cost as well as the value forgone by taking the action.

What are monetary costs examples?

Companies must pay workers, purchase production machinery and materials, ensure distribution of products and market them to consumers. These are examples of monetary costs, or the actual expenditures involved in production. Opportunity costs refer to whatever must be forgone to obtain an item or produce a good.

What is monetary benefit?

Monetary Benefit means any kinds of benefit, money and valuables, entertainment and any form of convenience provided.

Is the monetary value that is received for goods sold?

Revenue refers to the receipt of monetary value from the sale of goods or services and other income generating activities. Revenue is recorded for accounting purposes when it is earned by an entity, which usually involves an exchange of value among two or more parties in an arm’s length transaction.

What is the difference between opportunity cost and monetary cost?

Opportunity cost represents the quantum of profit that is let go, when an entity chooses one resource utilization alternative over another. Money costs are the actual cash (or credit) costs that an entity incurs during its business operations.

Which of the following is included in monetary cost?

Therefore, money costs include the following expenses: (i) Depreciation and obsolescence charges. (ii) Power fuel charges. (iii) Wages and salaries. (iv) Cost of machinery, raw material etc.

What is real cost how it is different from monetary cost?

1 Answer

Money cost	Real cost
1. Production cost expressed in money terms is called as money cost.	1. Real cost refers to the payment made to compensate the efforts and sacrifices of all factor owners for their services in production.

Why do monetary incentives work?

Monetary incentives often do achieve short-term goals for businesses, such as increasing productivity or reducing problematic behaviors. An incentive scheme can improve employee attitudes and improve the working atmosphere. An incentive program can also be used as a recruiting tool.

What does monetary cost mean?

Monetary cost is how much money it will cost as opposed to all the other costs that are not directly billed. eg. In monetary costs the house will be £45,000 to build, but that does not include the costs of your time in organising it and any subsequent alterations, or in furnishing it.

What is non monetary cost?

Non-Monetary Price. that which it costs a consumer, other than money, to buy a product; the non-monetary price of purchasing a product includes the time devoted to shopping for it and the risk taken that it will deliver the expected benefits.

What is explicit monetary cost?

Explicit costs. Explicit costs are opportunity costs that involve direct monetary payment by producers. The explicit opportunity cost of the factors of production not already owned by a producer is the price that the producer has to pay for them. For instance, if a firm spends $100 on electrical power consumed, its explicit opportunity cost is $100.

What is the difference between monetary base and money supply?

The monetary base is part of the overall money supply. The monetary base refers to that part of the money supply which is highly liquid (i.e. easy to use). The monetary base is also referred to as ‘narrow money’ because it is a narrow definition and doesn’t include more illiquid types of the money supply.