Answer:
c. Optimum replacement interval (ORI)
Explanation:
Optimum replacement interval used to estimate the most cost effective time to replace an asset on the basis of their replacement cost.
There needs to be a balance between the replacement cost and the value that is being lost by changing the asset.
The useful value must be low to justify replacement cost.
For example if the cost of maintaining a machine has increased a lot as a result of wear and tear, it will be more cost effective to make a replacement in order to minimise cost and increase efficiency
Answer:
C. Depreciation is a current expense of a cash outflow in the current period.
FALSE depreciation is a deferral expense it do not related t oa cash flow
Explanation:
A. The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
CORRECT income statement end at a certain date and include transaction under accrual accounting which doesn't relate to cash disbursements or collection
B. The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as nonminuscash expense items
CORRECT It works with accrual accounting
D. Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.
CORRECT the cash disbursements occurs at time zero. Then, the accounting distributes this over several period to decrease the impact in the first period
Answer:
Total fixed cost $16,000
unit fixed cost for 10,000 units $1.60
Explanation:
the budget was made for 8,000 units
so the 2.00 dollars for fixed cost will be based on a production for 8,000 units
total fixed cost: 8,000 budgeted units x $2 per unit = 16,000
This is the level of fixed cost.
<u>For 10,000 units the total fixed cost should be the same.</u>
and for units it will be total cost / units of production
16,000 / 10,000 = 1.6
On unit-level it will drop by 40 cent to $1.60 from $2.00
Answer:
(B) Uncertainty avoidance.
Explanation:
Uncertainty avoidance is one of the dimensions of national culture.
It deals with with degree at which members of a society feel comfortable and tolerate uncertainty and the unknown.
People in cultures with high uncertainty avoidance try to reduce the occurrence by implementing rules and regulations while those in cultures of low uncertainty avoidance feel more comfortable and have no need to implement many rules.
