This Finance Storyteller video about opportunity cost has 1) a voice imitation of a 1970s British comedy series, 2) a reference to an early 90s rock song, and 3) a reference to a late 80s / early 90s sitcom. Can you spot all three of them? Please respond in the comments below!
Thank you for your great content, if I may ask a question. I can't seem to understand. The difference between group and company FS Here's an example: Main company (A) owns 60% of subsidiary X, 40% of subsidiary Y and 100% of subsidiary Z. Does that mean that the group statement such as balance sheet and income statement includes combination of A, X(60%), Y(40%) and Z(100%)? And does that also mean that the company statements are for main company A only? Also for ownership accounting, there are 3 way. Creating consolidated subsidiary FS, the cost method and the equity method. Is it right to say that consolidated subsidiary is the same as the group financial statements?
Hi there! Thank you for your questions. I think my recent videos on consolidated financial statements (and the essential concept of "control") ua-cam.com/video/DTFD912ZJQg/v-deo.html and noncontrolling interest ua-cam.com/video/wneoAaNZv8E/v-deo.html will answer the questions you have.
@@TheFinanceStoryteller Thank you, those videos improved my understanding so much. However I still can't find any information on the difference between Group and Company balance sheet where there are two separate ones shown side by side. Usually found in Singapore companies such as AEM Holdings Limited (AWX) or DBS Group Holdings (D05).
I would guess that the Group balance sheet is the consolidated one, and the Company balance sheet is the balance sheet of the parent company by itself.
I personally use them interchangeably, but am not sure that is totally correct. They are very close to each other, but I can't spell out the difference for you.
Hi Nate! All those numbers are estimates, to serve as an illustration for the concept. Total time in the week is limited, and I get bored doing either just new videos or just optimization work. I can only spend my time once, so if I make more new videos then I need to "give up" the optimization work on a certain number of existing videos. I start off from the assumption that I fully spend my workweek on optimizing videos. Then I look at how efficient/motivated I would be to make new videos instead. For the first video, extremely motivated, as it is a break from doing optimization work. For the second one, very motivated. For the third one, pretty motivated. For the fourth one, still motivated but it starts to get harder. As I said in the video, it gets incrementally harder to make new videos (finding a topic to discuss, researching it, breaking through writers block, fatigue in recording audio scripts and having to redo takes). Does that help?
Sorry for my previous question,I myself misinterpreted it My doubt is,what will the opportunity cost be if the next best alternative is doing nothing Suppose you have $100,you watch a movie,what will the opportunity cost be Will it be $100 Or Will it be $100(you could do other things) *as well as the time spent on watching a movie* (since by doing nothin you could've earned that time) Hope my question is clear Ty for the quick reply 🙏
Opportunity cost tends to be expressed in monetary terms ($), and tends to be seen as a "flow" metric. So if you have $100, and you don't spend the $100, then this is an asset that you are keeping. The comparison could be: what do I do with my time this evening, option A paying $10 to see a movie, option B earning $25 by working, for the same length of time. Then the opportunity cost is $35, the difference between spending $10 and earning $25.
Not sure, it's not a term I use. Some improvised thoughts: it could be the cost expressed in monetary terms (how many $ does it cost), or the cost of using money.
There is no calculation behind it. I made estimates based on my own experience of both making as well as optimizing UA-cam videos. In a single workweek, I can make either make 8 new videos, or optimize 80 existing videos, or a combination of both activities. What I am trying to illustrate is that it becomes incrementally harder to make yet another new video within one week (though the first few are relatively easy).
@@TheFinanceStoryteller oh great! I thought there was a calculation behind to get the intervals :). I totally get the concept of what you're explaining, and thanks for that. It is helping me a lot. :)
Nice to hear that! I have a few videos on related topics as well that might be helpful for you: sunk cost, sensitivity analysis, etc. ua-cam.com/video/kVFGXomwvxg/v-deo.html
Hello Raza! I am not sure what you mean with that comment. Are you trying to get your homework questions answered? If you watch the video, you will see what the use is of the opportunity cost concept... by choosing option A, what do you walk away from by not choosing B.
I don't like your style of communicating. However, as I am a nice guy, I will respond to you anyway. I think that statement is false, as opportunity cost does have a meaning in the economic analysis.
@@TheFinanceStoryteller But opportunity cost is a sacrifice cost then how it has a meaning in economic analysis because it does have a recoord in financial or accounting
This Finance Storyteller video about opportunity cost has 1) a voice imitation of a 1970s British comedy series, 2) a reference to an early 90s rock song, and 3) a reference to a late 80s / early 90s sitcom. Can you spot all three of them? Please respond in the comments below!
It is not only the best explanation Ive seen for my PMP preparation, but also you made me laugh 😂
Thank you!!!! :-)
Your out of box thinking is always fascinating.
Thank you, Jagadeesh! That is a wonderful compliment. :-)
Haven't finished watching yet, but I can already say thanks for the laughter. Great video.
Thank you very much, Martin!!! Great to hear that. :-) Please subscribe to the channel!
@@TheFinanceStoryteller Already there my friend. Great content as always.
Excellent! P.S. I hope you are not studying cultural anthropology. ;-)
@@TheFinanceStoryteller lol I'm an architect learning finance, so I guess I kind of relate to those poor (literally) cultural anthropologists.
Martin Ferraro 😂😂
Like your video. Thank you.
Thank you too
Thank you for your great content, if I may ask a question. I can't seem to understand. The difference between group and company FS
Here's an example:
Main company (A) owns 60% of subsidiary X, 40% of subsidiary Y and 100% of subsidiary Z. Does that mean that the group statement such as balance sheet and income statement includes combination of A, X(60%), Y(40%) and Z(100%)?
And does that also mean that the company statements are for main company A only?
Also for ownership accounting, there are 3 way. Creating consolidated subsidiary FS, the cost method and the equity method. Is it right to say that consolidated subsidiary is the same as the group financial statements?
Hi there! Thank you for your questions. I think my recent videos on consolidated financial statements (and the essential concept of "control") ua-cam.com/video/DTFD912ZJQg/v-deo.html and noncontrolling interest ua-cam.com/video/wneoAaNZv8E/v-deo.html will answer the questions you have.
@@TheFinanceStoryteller Thank you, those videos improved my understanding so much. However I still can't find any information on the difference between Group and Company balance sheet where there are two separate ones shown side by side. Usually found in Singapore companies such as AEM Holdings Limited (AWX) or DBS Group Holdings (D05).
I would guess that the Group balance sheet is the consolidated one, and the Company balance sheet is the balance sheet of the parent company by itself.
What is the difference between Incremental cost and marginal cost
I personally use them interchangeably, but am not sure that is totally correct. They are very close to each other, but I can't spell out the difference for you.
Very nicely explained 👍
Thank you!
why did it cost 5 optimized videos when you made your fourth new video?
Hi Nate! All those numbers are estimates, to serve as an illustration for the concept. Total time in the week is limited, and I get bored doing either just new videos or just optimization work. I can only spend my time once, so if I make more new videos then I need to "give up" the optimization work on a certain number of existing videos. I start off from the assumption that I fully spend my workweek on optimizing videos. Then I look at how efficient/motivated I would be to make new videos instead. For the first video, extremely motivated, as it is a break from doing optimization work. For the second one, very motivated. For the third one, pretty motivated. For the fourth one, still motivated but it starts to get harder. As I said in the video, it gets incrementally harder to make new videos (finding a topic to discuss, researching it, breaking through writers block, fatigue in recording audio scripts and having to redo takes). Does that help?
Very helpful
Glad to hear that 😊
Sorry for my previous question,I myself misinterpreted it
My doubt is,what will the opportunity cost be if the next best alternative is doing nothing
Suppose you have $100,you watch a movie,what will the opportunity cost be
Will it be $100
Or
Will it be $100(you could do other things) *as well as the time spent on watching a movie* (since by doing nothin you could've earned that time)
Hope my question is clear
Ty for the quick reply 🙏
Opportunity cost tends to be expressed in monetary terms ($), and tends to be seen as a "flow" metric. So if you have $100, and you don't spend the $100, then this is an asset that you are keeping. The comparison could be: what do I do with my time this evening, option A paying $10 to see a movie, option B earning $25 by working, for the same length of time. Then the opportunity cost is $35, the difference between spending $10 and earning $25.
@@TheFinanceStoryteller ty got it👍
Great explanation 😍
Thank you 🙂
Could be lives down the road
what is monetary cost?
Not sure, it's not a term I use. Some improvised thoughts: it could be the cost expressed in monetary terms (how many $ does it cost), or the cost of using money.
how did you get the intervals like
80
79
77
74
69
62
52
38
what`s the calculation to get those numbers?
There is no calculation behind it. I made estimates based on my own experience of both making as well as optimizing UA-cam videos. In a single workweek, I can make either make 8 new videos, or optimize 80 existing videos, or a combination of both activities. What I am trying to illustrate is that it becomes incrementally harder to make yet another new video within one week (though the first few are relatively easy).
@@TheFinanceStoryteller oh great! I thought there was a calculation behind to get the intervals :). I totally get the concept of what you're explaining, and thanks for that. It is helping me a lot. :)
Nice to hear that! I have a few videos on related topics as well that might be helpful for you: sunk cost, sensitivity analysis, etc. ua-cam.com/video/kVFGXomwvxg/v-deo.html
I need a coffee.
Being caffeinated helps to push that Production Possibility Frontier ever further outward!
Opportunity cost have no meaning in the economic analysis Trur or false?
Hello Raza! I am not sure what you mean with that comment. Are you trying to get your homework questions answered? If you watch the video, you will see what the use is of the opportunity cost concept... by choosing option A, what do you walk away from by not choosing B.
@@TheFinanceStoryteller I am asking you the answer
@@TheFinanceStoryteller Opportunity cost have no meaning in the economic analysis True or false?
I don't like your style of communicating. However, as I am a nice guy, I will respond to you anyway. I think that statement is false, as opportunity cost does have a meaning in the economic analysis.
@@TheFinanceStoryteller But opportunity cost is a sacrifice cost then how it has a meaning in economic analysis because it does have a recoord in financial or accounting
Your voice is not clear
This is the best I can do.... you may switch on the subtitles if that works better for you.
🤣🤣🤣🤣🤣