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4 years ago

Depreciation is a _____, a cost that cannot be affected by any future action.

2 answers:

7 0

Depreciation is a sunk cost. It is the value lost on an asset after consumption. In accounting, depreciation cost qualifies as a sunk cost because it is already lost and cannot be recovered. For that reason, it is correct to ignore depreciation cost when determining the future course of a business.

Allisa [31]4 years ago

6 0

Correct Answer is B, Sunk Cost.

Depreciation is a Sunk Cost. A cost that cannot be affected by any future action.

Depreciation is basically a cost of an asset that reduces over time.

Sunk Cost is the cost that has already acquired and cannot be pulled through.

So Depreciation is a sunk cost. A cost that has already been incurred and cannot be recovered. All assets depreciate over time.

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What does it mean when the fed raises interest rates

Andrews [41]

What Happens When the Fed Raises Rates?

——> When the Fed raises the federal funds target rate, the goal is to increase the cost of credit throughout the economy.

7 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago

You are planning to purchase displays for your store which has 2,400 sq ft of selling space. Each display has a footprint of 10

Butoxors [25]

Solution: Space to be left as open = 60% of 2400 square ft. = 2400 * 60/100 = 1440 sq. ft. Space left for display = 2400- 1440 = 960 sq ft. Size of each display = 10 ft * 4 ft = 40 sq. ft Number of displays that can be fitted in the store = Space left for display / size of display = 960 / 40 = 24 24 displays can be put up in the store.

4 0

3 years ago

Read 2 more answers

The demand for Carlo Rossi wine is relatively elastic since there are many other wines available to choose from. If the governme

Tomtit [17]

Answer:

A. The majority of the tax will be borne by the producer.

Explanation:

When an Indirect Tax (impact & incidence on different people) is levied : The burden of it is shifted to the party (buyers/ sellers) whose element (demand/ supply) is more inelastic (less responsive to price).

In this case: If demand for Carlo Rossi wine is relatively elastic (because of substitutes presence) - levying tax on it will hence imply major burden to be borne be producer (because demand is relatively elastic).

b,c : All tax will be borne passed to consumer / producer - if demand is perfectly inelastic/ if supply will be perfectly inelastic respectively.

d: Majority tax will be borne by consumer - if demand is relatively inelastic (than supply)

5 0

3 years ago

Shawn and Harry signed a contract for Shawn to build a house for Harry according to the specifications provided by Harry. The co

Evgesh-ka [11]

In this case: c. if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised.

Explanation:

Harry signed a contract with Shawn to build a house. Harry made some specification to build the house. Shawn did not complete the house according to the specification of the Harry. So Harry refused to pay the contract amount.

Under doctrine of specific performance, the defendant, who has performed substantially, saving some part of contract which is not central to the contract unintentionally, he /she is entitled to receive the contract price as agreed less the money needed to correct the mistakes made by him.

So in this case, Harry can pay less money than the contract price.

3 0

4 years ago