Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
Answer:
The predetermined overhead rate for May should be: $18.70 per direct labor hour
Explanation:
Predetermined Overhead rate is the rate that is used to allocate Overheads to Departments or Jobs.
<em>Predetermined Overhead rate = Budgeted Overheads / Budgeted Activity</em>
= $134,640/7,200
= $18.70 per direct labor hour
Observe cross-culture differences in etiquette.
As the gas prices increase, the demand for electric and fuel efficient cars has greatly increased. People want to avoid spending more money than needed. With new advancements being made technologically, there is not much of a demand for cars that require excessive gasoline.
These new advancements have created a new era of automobiles which in turn creates job openings and economic growth in the auto industry.
Personally, I would rather purchase an electric car, or a car that is more fuel efficient to save more money in the long run.
