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1 year ago

For most businesses, annual straight line depreciation expense on the company's building is what type of cost?

Business

1 answer:

Rom4ik [11]1 year ago

6 0

For most businesses, annual straight line depreciation expense on the company's building is fixed cost.

A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.

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XYZ Insurance Company uses class rating to determine the rate to charge for insurance. For one type of insurance, the pure premi

hichkok12 [17]

Answer:

$100

Explanation:

Insurance coverage is the sum of expenses paid and the premium paid on these expenses.Total coverage is the calculated by adding the premium and expense. In this question premium is the $75 and the expense ratio is 25%.

As we know

Coverage = Premium + Expense

Coverage = 75% + 25%

So, based on above equation we can calculated the expense as follow

Expense = $75 x 25% / 75% = $25

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3 years ago

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $3,200 Fee

koban [17]

Answer:

$12,100

Explanation:

Data provided;

Accumulated Depreciation = $3,200

Fees Earned = $17,400

Depreciation expense = $1,300

Insurance Expense = $200

Prepaid Insurance = $4,800

Supplies = $900

Supplies Expense = $3,800

Now,

The Net income

= Fees Earned - Depreciation Expense - Insurance Expense - Supplies Expense

= $17,400 - $1,300 - $200 - $3,800

= $12,100

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4 years ago

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mr_godi [17]

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3 years ago

The Wet Corp. has an investment project that will reduce expenses by $25,000 per year for 3 years. The project's cost is $20,000

Jlenok [28]

Answer:

c. $20,416.50

Explanation:

Cost of assets = 20,000

Depreciation year 1 = 33% * 20,000 = $6,666

Annual cost saving = 25,000

Tax rate = 25%

Operating cash flow Year 1 = Cost saving*(1 - tax) + Tax*Depreciation

Operating cash flow Year 1 = 25,000*(1-0.25) + 0.25*6,666

Operating cash flow Year 1 = 25,000*0.75 + 0.25*6,666

Operating cash flow Year 1 = 18750 + 1666.5

Operating cash flow Year 1 = $20,416.5

So, the cash-flow from the project in year 1 is $20,416.50

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3 years ago

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Mama L [17]

Answer:

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Explanation:

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3 years ago