Answer:
132,000$ will be recorded by west as amortization expense for the year.
Explanation:
Depreciation/amortization is systematic allocation of cost of asset over its useful life. In this case asset cost is not given so we assume that PV of lease payment is equal to market value (660,000 dollars) of asset.
In case of leased asset the useful life taken for calculation of depreciation is lower of 1) Useful life 2) Lease term as per applicable accounting standards.
So we have taken 5 years to charge depreciation on Straight line method.
Hence by dividing 660000 by five we get our answer.
Answer:
Operational level
Explanation:
The operational level is the bottom level in an organization and it is at this level that <u>daily business operations and activities, that connect the organization directly with customers, take place.</u>
Examples of such activities include; manufacturing, marketing and selling.
Answer:
D. Product and Promotion
Explanation:
Product strategies are strategies to outlines the direction of a product, how it will get there and how it will succeed. They are strategies used in improving products.
By changing the product packaging, the company modified its product strategy.
Promotion strategies are strategies used in promoting or stimulating demand for a company's goods and services. They are designed in a way to mostly inform and persuade the public about purchasing their products and services. By developing a contest geared towards 12 to 17 year olds, the company modified its promotion strategies.
Answer:
The correct answers are the following:
a - 4 Sunk
b - 5 Opportunity
c - 3 Fixed
d - 2 Variable
e - 6 Incremental
f - 1 Recurring
g - 7 Direct
h - 8 Non-recurring
Explanation:
a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.
b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.
c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.
d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.
e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.
f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.
g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.
h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.
