The formula for annual depreciation by means of the units-of-production method is:
(depreciable cost / estimated output) x the actual yearly output
Under the units of production method, the quantity of depreciation indicted to expense differs in direct proportion to the amount of asset usage. Therefore, a business may charge more depreciation in times when there is more asset consumption and less depreciation in times when there is a smaller amount of usage. It is the most precise method for indicting depreciation as this method relate thoroughly to the wear and tear on assets. Though, it also needs that someone should track asset usage which means that its use is commonly restricted to more luxurious assets. It needs estimation of the total usage over the life of the asset in order to come up with the amount of depreciation to identify in separate accounting period.
Fees charged to customers for account maintenance :)
Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
The best answers for this statement would be:
b.taxes; legal liability
Taxes – the business structure that you decide will also
decide on how much the tax that you will pay will cost. It will have effects on
the kinds tax you must pay.
Legal Liability – This should be an advantage because you
need protection from your personal assets.