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2 years ago

An isocost line is a curve that shows all combinations of labor and capital that are available for a given total cost

Business

1 answer:

nirvana33 [79]2 years ago

6 0

Answer:

The above statement is TRUE

Explanation:

Isocost Line shows input/factor combinations (here - labor & capital) which are of same Total Cost / budget to the producer , given factors price .

It is analogous to Consumer's Budget Line Constraint (representing product combinations satisfying their income budget) .

It is an important component of Producer's Equilibrium : Producer is at equilibrium where Isocost is tangent to Isoquant (representing input/ factor combinations yielding same level of production quantity - analogous to consumer's indifference curve showing production combinations offering same consumer satisfaction) .

Tangency of Iscost line to Isoquant curve gives Producer Equilibrium .

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Depreciation on the company’s wind turbine equipment for the year is $6,200. The Prepaid Insurance account for the solar panels

GrogVix [38]

Answer & Explanation:

depreciation expense 6,200 debit

accumulated depreciation wind turbine 6,200 credit

to record depreciation expense

insurance expense 2,000 debit

prepaid insurance 2,000 credit

to record expired insurance

unearned revenue 2,200 debit

service revenue 2,200 credit

to record service paid in advance

wages expense 2,400 debit

wages payable 2,400 credit

to record accrued wages for the period

interest receivable 520 debit

interest revenue 520 credit

to record interest earned for the period.

8 0

3 years ago

makvit [3.9K]

Answer:

$2,000

Explanation:

where the cost of the delivery truck is $28,000 and a useful life of 5 years with a salvage value of $3,000,

Annual Depreciation = $\frac{28000-3000}{5000}$

= $\frac{25000}{5}$

= 5000

Therefore,

After year 1 which is by January 1st, 2019

Net book value of the truck = $28,000 - $5,000

= $23,000

After year 2 which is by January 1st, 2020

Net book value of the truck = $23,000 - $5,000

= $18,000

After year 3 which is by January 1st, 2021

Net book value of the truck = $18,000 - $5,000

= $13,000

After year 4 which is by January 1st, 2022

Net book value of the truck = $13,000 - $5,000

= $8,000

If the useful life of the asset is extended to 7 years from 5 years, the number of years remaining for the asset as at January 1st, 2022 would be extended from 1 year to 3 years.

Therefore, where the residual value is $2,000

Depreciation per year for the remaining 3 years

= (8000 - 2000)/3

= 6000/3

= 2000

Popular Company would report $ 2,000 as depreciation expense for the year ended December 31st, 2022.

3 0

3 years ago

__________ is the only variable which will decrease the amount brought to the market (quantity supplied) if all other variables

svetlana [45]

Demand should be right since its the public's demand what gets put out in the market for them to consume.

8 0

3 years ago

A major advantage to a business residence situation is_____

PolarNik [594]

Answer:

Difficult but if you are try it will be easier to you

3 0

2 years ago

Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 l

Sati [7]

Answer:

Loss on exchange is -$7,800

initial value of tractor is $42,200

Gain on exchange is $8000

Initial value of tractor is $58,000

Explanation:

The amount of gain or loss recognizable on the exchange is the difference between the fair value of the old asset and its book value

Loss on the asset=$10,200-$18,000=-$7,800

Initial value of the new tractor=fair value of the old tractor+cash payment

Initial value of the new tractor=$32,000+$10,200=$42,200

If fair value were $26,000

gain on the exchage=$26,000-$18,000=$8,000

Initial value of the new tractor=$32,000+$26,000=$58,000

3 0

3 years ago