The process of writing off an intangible asset is

As a result of a decrease in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. This is an

Mandarinka [93]

The actions of the consumers in buying more gasoline when prices drop is the<u> income effect. </u>

<h3>What is the income effect?</h3>

It is one of the determinants of demand.
When market prices drop or income rises, consumers have more money to buy more goods.

The price of gasoline dropped and this increased the relative income of consumers because they were able to buy more gasoline.

This is therefore the income effect.

Find out more on the income effect at brainly.com/question/1416285.

8 0

2 years ago

Macrosoft Company reports net income of $62,000. The accounting records reveal depreciation expense of $77,000 as well as increa

iren2701 [21]

Answer:

$108,500

Explanation:

The preparation of the operating activities section is presented below

Cash flow from operating activities

Net income $62,000

Add: depreciation expense $77,000

Add: Increase in account payable $10,000

Add: Increase in income tax payable $16,500

Less: Increase in prepaid rent -$57,000

Cash flow from operating activities $108,500

The negative amount shows cash outflow and the positive amount shows the cash inflow

5 0

4 years ago

Address You, a fancy dress manufacturer, sold a dress for $8,000 on credit. The cost of producing this dress was $1,000. First,

givi [52]

Answer:

It will affect the accounting equation in $7.000.

Explanation:

The Assets will increase in $8.000 because Address You now have the right to claim to a customer $8.000 and is recognized in the Receivables. At the same time, Address You has to diminish its inventories at $1.000, because it delivered the dress to the customer. Finally, on the other hand, the profits for selling the dress ($8.000 - $1.000) affect the equity, and now the Accounting equation is balanced.

3 0

3 years ago

Which of the following statements about scholarships is not true

Artemon [7]

I hope this helps ,and i hopes it's right!

B, this answer is correct,

my reason being is because Scholarships are based off of things that you can do in school or sports, and they do not give them out because you can beat box or burp loud.

5 0

3 years ago

Read 2 more answers

Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year:

m_a_m_a [10]

Answer:

Deoro Company

Unit cost for each model

Model A Model B

1. Using direct labor hours $176.72 $232.815

2. Using the four activity drivers $136.45 $298.20

3. ABC (method 2) produces the more accurate cost assignment. The overhead cost depends on the level of activity consumed by each model.

Explanation:

a) Data and Calculations:

Activity Expected Cost Activity Driver Activity Capacity

Setting up equipment $492,880 Number of setups 610

Ordering costs 372,000 Number of orders 18,600

Machine costs 963,600 Machine hours 43,800

Receiving 501,600 Receiving hours 11,400

Total overhead costs $2,330,080

Activity rates:

Setting up equipment = $808 ($492,880/610) per setup

Ordering costs = $20 ($372,000/18,600) per order

Machine costs = $22 ($963,600/43,800) per machine hour

Receiving = $44 ($501,600/11,400) per receiving hour

Total direct labor hours = 8,000

Total overhead costs = $2,330,080

Predetermined overhead rate using direct labor hours:

= $291.26 ($2,330,080/8,000)

Unit cost for each model:

Using direct labor hours to apply overhead:

Model A Model B

Direct materials $600,000 $800,000

Direct labor $480,000 $480,000

Overhead $1,747,560 $582,520

Total costs $2,827,560 $1,862,520

Unit costs $176.72 $232.815

Units completed 16,000 8,000

Direct labor hours 6,000 2,000

Number of setups 400 200

Number of orders 6,000 12,000

Machine hours 24,000 18,000

Receiving hours 3,000 7,000

Overhead assigned to:

Using predetermined rate based on direct labor hours:

Model A Model B

Overhead rate = $291.26 per direct labor hours

Direct labor hours 6,000 2,000

Using direct labor hours $1,747,560 $582,520

Using activity-based costing method:

Rates Model A Model B

Setting up equipment = $808 $323,200 ($808*400) $161,600 ($808 * 200)

Ordering costs = $20 120,000 ($20 *6,000) 240,000 ($20 * 12,000)

Machine costs = $22 528,000 ($22 *24,000) 396,000 ($22 * 18,000)

Receiving = $44 132,000 ($44 * 3,000) 308,000 ($44 * 7,000)

Total overhead assigned $1,103,200 $1,105,600

Using activity-based rates to apply overhead:

Model A Model B

Direct materials $600,000 $800,000

Direct labor $480,000 $480,000

Overhead $1,103,200 $1,105,600

Total costs $2,183,200 $2,385,600

Units completed 16,000 8,000

Unit costs $136.45 $298.20

4 0

3 years ago