Answer:
7.98%
Explanation:
The Rate of Return (ROR) is the gain or loss of an investment over a period of time compared to the initial cost
Starting year 2, Annual O&M cost in year N = Annual O&M cost in year (N - 1) + $750
Annual net benefit = Annual revenue - Annual O&M cost
In year 10, Annual revenue ($) = 72,000 + 35,000 salvage value = 107,000
Rate of Return (ROR) of Annual net benefit is computed using Excel11 IRR function as follows.
Year (N) Revenue ($) Cost ($) NAB ($)
0 4,50,000 -4,50,000
1 72,000 4,500 67,500
2 72,000 5,250 66,750
3 72,000 6,000 66,000
4 72,000 6,750 65,250
5 72,000 7,500 64,500
6 72,000 8,250 63,750
7 72,000 9,000 63,000
8 72,000 9,750 62,250
9 72,000 10,500 61,500
10 1,07,000 11,250 95,750
ROR of NAB = 7.98%
Simple answer is efficiency.
More output can be produced if labour specialised and focused on a particular activity.
One due to the time saved from switching tasks and secondly getting better (and faster) at what they do.
This leads to two outcomes.
1. Lower average costs of production
2. Greater output.
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Answer:
desired ending finished goods units less beginning finished goods units.
Explanation:
production budget can be regarded as budget that gives the calculation of the number of units of particular products which is needed to be manufactured, this is comprises the sales forecast as well as amount of finished goods inventory that is planned to have on hand.
It should be noted that the formula for the production budget is desired ending finished goods units less beginning finished goods units..
Answer:
B.
compute depreciation for a full year under straight minusline depreciation and multiply it by the fraction of the year that you held the asset.
Explanation:
Under straight-line depreciation, the asset value is spread equally throughout its useful life.
To get the depreciation of a partial year, you need to calculate the depreciation a full year first.
Divide the asset value by the number of its useful years to get depreciation value for one year. To compute partial depreciation, you need to establish the fraction of the year to be depreciated. Divide the number of months by twelve to get the fraction.
To get actual depreciation, multiply this fraction by a full year depreciation.
