Imputed value is the value that is assigned to something that is not directly observable. This can be done for a variety of reasons, such as when the actual value is not known, or when it is not possible to directly observe the thing of interest. For example, the value of a company's brand may be imputed based on the value of similar companies' brands. What is an example of impute? An example of impute would be when a company includes an expected future income tax expense in its current income statement, even though the actual taxes may not be paid until a future period.
What is the meaning of imputed economy?
In an imputed economy, the value of goods and services is based on the value of the inputs used to produce them. This includes the value of labor, land, and capital. The value of labor is imputed to the worker based on the value of their skills and experience. The value of land is imputed to the owner based on the value of the land itself and the improvements made to it. The value of capital is imputed to the owner based on the expected return on investment. What is a antonym for imputation? An antonym for imputation would be non-imputation.
What is imputed or notional cost?
Imputed cost is the opportunity cost of using a resource in one way rather than another. It is also known as notional cost.
In corporate finance, imputed cost is often used to refer to the opportunity cost of using equity capital rather than debt capital. For example, if a company has the opportunity to issue new equity to finance a new project, but decides instead to finance the project with debt, the imputed cost of equity is the opportunity cost of using debt rather than equity.
Imputed cost can also be used to refer to the opportunity cost of using internal resources rather than external resources. For example, if a company has the opportunity to outsource a project to an external contractor, but decides instead to use internal resources, the imputed cost of using internal resources is the opportunity cost of using external resources.
What's the difference between explicit cost and implicit cost?
Explicit costs are those that require an outlay of cash by the firm, such as raw materials, labor, and other operating expenses. Implicit costs are those that do not require an outlay of cash, but still impose a cost on the firm. This includes opportunity costs, which are the costs of forgone alternatives. For example, if a firm uses its own land and buildings to produce a good, the opportunity cost is the rent that the firm could have earned by leasing out the land and buildings.