Answer:
C. To earn a satisfactory return on investment.
Explanation:
The objective of the capital budgeting is that the company should have to do the investment in that thing which should be profitiable. In this, the company have the options i.e. either it selects the better investment or proposal for the enterprise
So as per the given situation, when the return on the investment is earn and it becames satisfactory so this represent the capital budgeting objective
Hence, the option c is correct
Answer:
b. the cost recovery deduction is $13,650
Explanation:
The computation of the cost recovery deduction is given below;
Cost recovery = cost of apartment building × 0.455%
= $3,000,000 × 0.455%
= $13,650
We multiply the cost of department building with the percentage i.e. 0.455% so that the cost recovery deduction could come
hence, the cost recovery deduction is $13,650
It is D Reload fee
Crédit card companies usually don't charge a reload fee.
Answer:
LIFO method
Explanation:
Using Last is first out method means we are selling the current products.
For example i purchased the machine in 2017 at $5000
I purchased the same machine in 2018 at $6000
According to the LIFO, if i sell the machine i would record the recent cost of the machine which is $6000, not $5000
So, It would better match with my revenue in income statement as i am stating the current cost of product in income statement.
But the problem rise in balance sheet, because the cost of unsold machine would go into the balance sheet.
The cost of machine in the balance is $5000. It is the outdated cost.