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Allisa [31]
4 years ago
12

The accounting rate of return requires the use of the accrual basis of accounting and​ therefore, the annual depreciation must b

e caluclated. How do you calculate the annual​ depreciation?
Business
1 answer:
PtichkaEL [24]4 years ago
4 0

Answer:

Annual depreciation is calculated by dividing the cost of an asset over its useful life.

Explanation:

For example, if a company is looking to invest in new machinery which costs USD 300,000 and the machinery is expected to have a useful life of 10 years with no scap/salvage value, then the annual depreciation would be computed as:

USD 300,000/10 = USD 30,000 depreciation expense per year.

You might be interested in
If the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities
sveticcg [70]

Answer: internally homogenous

Explanation:

Since the potential customers belong to the same segment, display comparable characteristics, and choose the same product qualities that are consistent with their segment, then the condition for the ideal market segment approach which should be used is the internally homogeneous.

On the other hand, if the potential customers are in different segments, have different characteristics, and choose different product qualities, then the externally homogeneous will be ideal.

internally homogenous

8 0
2 years ago
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive
Ivahew [28]

In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations.

1. Calculate variable cost per unit using the identified high and low activity levels

Variable cost = (Total cost of high activity – Total cost of low activity) / (Highest activity unit – Lowest activity unit)

((112,000 X .167) - (168,000 X .132)) / (168,000-112,000) = variable costs

2. Solve for fixed costs

To calculate the total fixed costs, plug either the high or low cost and the variable cost into the total cost formula.

It doesn't appear that you have enough information to answer this section. You need to know total cost to be able to answer this.

Total cost = (Variable cost per unit x units produced) + Total fixed cost

3. Construct total cost equation based on high-low calculations

4 0
3 years ago
A company had inventory on November 1, of 5 units at a cost of $24 each. On November 2, they purchased 14 units at $26 each. On
Serggg [28]

Answer:

e

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

If 11 inventories were sold, the inventory left would consist of 13 units purchased on the 2nd and 5 units the company had on the 1st

Inventory value = (13x 26) + (5 x 24) = 458

8 0
2 years ago
Companies HD and LD have the same total assets, total investor-supplied capital, operating income (EBIT), tax rate, and business
sergij07 [2.7K]

Answer:

e. HD should have a higher return on equity (ROE) than LD, but its risk, as measured by the standard deviation of ROE, should also be higher than LD's

Explanation:

As these companies only differ in the debt ratio with LD having a lower one means that HD has lower equity, therefore, a higher return on its equity. But it also the standard deviation of the return is higher because is more sensible to the changes in the net incomes.

7 0
3 years ago
If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, the amount of sales (units)
Feliz [49]

Answer:

10,769 units

Explanation:

Fixed costs is 1,200,000

The selling price is 240

The variable cost is 110

operating income 200,000

This can be calculated by equating both sides

200,000 + 1,200,000= 240x-110x

140,000= 130x

Divide both sides by the coefficient of x which is 130

140,000/130= 130x/130

x = 10769.2307

3 0
3 years ago
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