Breakdown compliance costs, both economic and accounting that deal with emergency services.

Expert Solution

1. Compliance cost is directly linked to conduct costs and the regulatory risk. Regulatory risk is generally a company's risk due to the changes in rules of the framework with which it is going forward. Conduct costs are the ones which are used to make payments for breaking down the aforesaid rules and regulations.

2. This compliance cost can be further associated in two scenarios of economics and accountancy. Costs associated to both are economic costs and accounting costs respectively as explained below.

3. Economic costs are associated with the opportunity that is losing out due to the present process undergoing. For e.g a company is using its building as a rental source but in an emergency service of increased product line, it converted the building into a warehouse. So there's an opportunity gone, which generally is known as the opportunity cost, directly included into economic costs.

4. Due to the above change, more labour are needed to meet up the operations in the warehouse where recruitments takes place with certain pay scale which are directly associated to accounting costs.

5. Generally speaking, Economic costs include accounting costs with opportunity costs but accounting costs doesn't include the opportunity costs. Accounting costs are known as Explicit costs where Economic costs are known as Implicit costs due to the aforesaid examples,

Rahul Sunny answered 2 years ago

how do we deal with medication compliance?

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