Answer: Target Costing
Explanation:
Target Costing is a method of costing on a product done while it's still being produced to determine the best price at which the product can be sold that would be able to compete with price of other similar products in the market and still make profit for the company.
RTP Corp needs to apply target costing for it's new computer processor in order for it to be profitable and beat the price of other processors in the market.
Answer:
The correct answer is letter "A": beliefs.
Explanation:
Beliefs are preconceived ideas individuals have based on their thoughts and experiences. Some beliefs could be wrong moreover when the individual experience is little or insignificant about a topic. Beliefs tend to be subjective most of the time and represent a true for individuals that can be confirmed or corrected.
Answer:
$1,350
Explanation:
Goodwill is the Excess of Cash Consideration over the Net Assets taken over. Net Assets taken over are measured at their Fair Market Value instead of Book Values at the Acquisition date.
Where,
Cash Consideration = $8,000
Fair Value of Net Assets Acquired ($6,000 + ) = $6,650
Therefore,
Goodwill = $8,000 - $6,650
= $1,350
Answer:
a. $14.7 million
b. $15.7 million
Explanation:
a. The asset retirement obligation (rounded) that should be recognized at the beginning of the extraction activities is:
Present Value of Cash Flows Expected From the Project / Asset Retirement Obligation at the Beginning = (0.60*10 + .40*30) * PVIF(7%,3 Years)
=(0.60*10,000,000 + 0.40 * 30,000,000) * 0.81630
= (6,000,000 + 12,000,000) * 0.81630
= 18,000,000 * 0.81630
= $14.7 million
b. The asset retirement obligation (rounded) that should be reported on the balance sheet one year after activities begin is:
Asset Retirement Obligation One Year After = Present Value of Cash Flows Expected From the Project*(1+.07)
= 14,700,000 * (1+0.07)
= 14,700,000 * (1.07)
= $15.7 million
PW = 3000×(((1.09^4)-1)÷(.09×1.09^4) + 9000×1.09^-5 = $15568.50
