<span>The department chair issued this directive because several computers and keyboards in the computer labs were recently damaged by spilled drinks and food. this is a rule issued by the department chair. </span>
The change in accounting estimates such as the life and residual value of a depreciable asset should be applied prospectively. During years 1 & 2, the depreciation is $4,000. However, at the end of year 2, the life of the asset was changed to 6 years and residual value is reduced to $1,200.
Thus, the depreciation starting year 3 is $2,450 computed as:
Cost of asset $19,000
Less: Depreciation (2 years) 8,000
Book Value $11,000
Divide by remaining life 4 years
Depreciation $2,750
Answer: c. only final goods to avoid double counting when including intermediate goods
Explanation:
The Gross Domestic Product (GDP) is an economic measure that aims to quantify the strength of an economy by checking it's Economic Activity.
When Calculating GDP, the FINAL value of goods and services produced WITHIN a country are the only amounts included to avoid Double Counting of products.
For example, if in making a television, the company making the TV bought electrical parts for $100 and the LED screen for $50 with labour costs of $50 and then sold it to a store for $300 that then sells the Television at $500, $500 is the amount that is included in GDP calculation. None of those other figures will be added again because they are already implicitly included in the final $500.
Answer:
c.
Explanation:
Marginal opportunity cost refers to the otherwise nonexistent cost that the company has to pay in order to produce one additional unit of something. Therefore the best statement that reflects this principle would be that two more hours studying per week could raise your grade from a C to a B, but to raise it from a B to an A, would require 7 hours more studying per week. This is because moving from B to an A is one additional letter grade, but costs a lot more than moving from C to B.
Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
