The formula for annual depreciation by means of the units-of-production method is:
(depreciable cost / estimated output) x the actual yearly output
Under the units of production method, the quantity of depreciation indicted to expense differs in direct proportion to the amount of asset usage. Therefore, a business may charge more depreciation in times when there is more asset consumption and less depreciation in times when there is a smaller amount of usage. It is the most precise method for indicting depreciation as this method relate thoroughly to the wear and tear on assets. Though, it also needs that someone should track asset usage which means that its use is commonly restricted to more luxurious assets. It needs estimation of the total usage over the life of the asset in order to come up with the amount of depreciation to identify in separate accounting period.
<u>Solution and Explanation:</u>
Answer a The following formula will be used to calculate the return on the equity.
Return on equity = Net income divide by Average equity
The return on equity is equal to Thus, return on equity is equal to 44.82% Answer b Correct answer is the option: ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity)
Answer c Correct answer is the option: Companies repurchase their own stock if they feel it undervalued by the market.
The manager may reject a proposal utilizing ROI that perhaps the manager accepts the use of recurring revenue.
<u>Explanation:
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Return on investment is a measure of quality that is used to determine investment efficacy or evaluate a variety of different assets with quality. ROI attempts, by comparison with investment costs, to accurately measure the returns of a particular transaction. For order to calculate ROI, the investor's gains (or returns) are distributed between the investment costs. As a percentage, the outcome is shown.
For example, a shareholder is buying an worth of property. The investor sold the estate at two years later.
Answer:
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Explanation:
See the images to get the result.
I would hire the first candidate. However, in today’s world everything you say is being recorded or somebody is paying close attention to what you, as a representative of a company has to say. If an employee does not feel that customer service is important I would see that as a liability because they may not censor themselves in front of customers. That being said, having good technical skills is important to do the job you were hired in the first place. Before hiring either employee I would do a stress test and see how each employee reacts to the scenarios in which they were put.