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2 years ago

In a lump-sum purchase of assets, the cost must be allocated to the individual assets because:______

1 answer:

4 0

In a lump-sum purchase of assets, the cost must be allocated to the individual assets because every individual asset has a different useful life and different depreciation rate. Depreciation is the methodical distribution of an asset's depreciable value over the course of its useful life.

The cost of an asset, or another quantity substituted for cost, less its residual value, is its depreciable amount. Depreciation can take many different forms, including the accelerated and the straight-line depreciation.

An accountant records depreciation for all the capitalized assets that have not yet been fully depreciated at the conclusion of an accounting period.

To learn more about depreciation, click here

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The ratio of cash to monthly cash expenses is computed as _____. cash as of year-end divided by monthly cash expenses beginning

gulaghasi [49]

Answer:

Computation of the Ratio of Cash to Monthly Cash Expenses:

None of these choices are correct.

Explanation:

The correct formula is Cash and Cash Equivalents/monthly expenses. And monthly cash expenses = Negative cash flows from operations/12.

But, in doing this calculation, first determine the monthly cash expenses, as given above. With the resulting figure, you can then apply to the Ratio of Cash to Monthly Cash Expenses.

The Ratio of Cash to monthly cash expenses helps a company to assess how long it can continue to operate given the heavy expenses burden it is experiencing, if it is a startup company. It also helps a company in distress to determine how long it could continue to operate before generating positive cash flows.

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4 years ago

Victryl Company applies overhead based on direct labor hours. At the beginning of the year, Victryl estimates overhead to be $70

fenix001 [56]

Answer:

The answer is: The overhead variance was $1,700 and it was overapplied

Explanation:

Victryl's estimated overhead cost per labor hour was:

$700,000 / 35,000 = $20 per labor hour

If during February, Victryl had 5,000 direct labor hours, then its estimated cost should have been: $20 x 5,000 = $100,000 estimated overhead cost

The actual overhead cost was $98,300, which is $1,700 less than the estimated cost.

8 0

3 years ago

Stemway Company requires a new manufacturing facility. It found three locations; all of which would provide the needed capacity,

PolarNik [594]

Answer:

Location C costs least to the company as it only costs $461,160

Explanation:

We will evaluate all the three proposals

Location A Cost = $500,000

Location B

Down payment = $100,000

Annual year end payment = $50,000 for upcoming 20 years

Present value @ 8% = ( ${\sum \frac{1}{(1+0.08){^1}}+ \frac{1}{(1+0.08){^2}}+ ........ \frac{1}{(1+0.08){^2^0}}}) \times $50,000$ = 9.818 X $50,000 = $490,900

Net Present Value = $100,000 + $490,900 = $590,900

Location C

Payment of $40,000 at the beginning of each year, which means first payment will not be discounted and remaining 24 payments will be discounted.

Thus Present Value = $40,000 +( ${\sum \frac{1}{(1+0.08){^1}}+ \frac{1}{(1+0.08){^2}}+ ........ \frac{1}{(1+0.08){^2^4}}}) \times $40,000$ = $40,000 + 10.529 X $40,000 = $40,000 + $421,160 = $461,160

Thus Location C costs least to the company as it only costs $461,160

7 0

3 years ago

_______best tip of the waiter a.attitude b.gratitide c.money d.foods

Drupady [299]

Answer:

Gratititude, because attitude is nice but not the best, money doesn't buy happiness, and the waiter serves YOU food.

6 0

3 years ago

Read 2 more answers

Suppose the price of Vanilla Coke increases by 9% and quantity demanded falls by 13% overall, but only 4% for loyal Coca-Cola cu

Gennadij [26K]

Answer: A) several substitutes; necessity; loyal Coca-Cola customers

Explanation:

SEVERAL SUBSTITUTES

Substitute goods are goods that are similar and so can be used in place of the other. Generally when the price of a good with a substitute increases, people switch to their substitutes if their price remain the same. The demand for vanilla coke dropped when it's prices rose signifying that people switched to the substitutes.

NECESSITY GOODS

These are also known as normal goods and increase in relation to income. That is if income increases, they increase as well but at a lower rate. Since we are assuming that the income of coke loyalists did not change but rather the prices rose and the demand reduced at a rate less than the increase in price we can safely assume that vanilla coke is a necessary good to Coca-Cola loyalists.

LOYAL COCA-COLA CUSTOMERS

Because the reduction in demand for Vanilla coke amongst Coca-Cola loyalists is less than the increase in price as opposed to the general public where the reduction in demand is more than the increase in price, we can say that an increase in total revenue is only coming from the loyal coke customers.

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3 years ago