Answer:
The maximizing profit strategy
Explanation:
When companies decides to use mathematical process in determining pricing, they are opting for profit maximizing strategy. Profit maximization is the situation in sales whereby profit are highest. Calculus is usually used in calculating the profit maximizing number of units produced. The level of output chosen for profit maximization is when the marginal cost equals the marginal revenue. This is the level at which the price is determined. Profit maximization analysis is a mathematical approach that helps organizations determine the price and output level that returns the greatest amount of profit.
Answer:
B. assets must increase, or equity must decrease by $10,000
Explanation:
As it is given that
The transaction increased the total liabilities by $10,000 which either increase the assets or decrease the equity by $10,000 as per the accounting equation
As we know that
Accounting equation is
Total assets = Total liabilities + owner equity
So by following this equation the appropriate answer is B as the transaction focused on balancing the accounting equation
A $60,000 outlay for a new machine with a usable life of 15 years is called <u>capital</u><u> </u><u>expenditure</u>.
Capital expenditure is the cash spent with the aid of the authorities on the development of machinery, gadget, construction, health facilities, education, and many others. It is also the expenditure incurred on acquiring constant assets like land and funding via the authorities that offer profits or dividends in destiny.
Capital expenditures are lengthy-time period investments, which means the belongings bought have a useful lifestyle of 365 days or extra. kinds of capital expenditures can encompass purchases of assets, systems, land, computer systems, furniture, and software program.
Capital expenditure or capital rate is the money a company or company entity spends to shop for, hold, or improve its constant assets, such as homes, cars, equipment, or land.
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Answer:
$90,900
Explanation:
Cost of truck = $303,000
Expected millage = 114,000 miles
Residual value = 0
Millage cover in first year = 34,000 miles
Depreciation is the systematic allocation of cost to an asset based on usage.
The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year
= (34,000/114,000) × 303,000
= 0.30 × 303,000 (intermediate calculations rounded to two decimal places)
= $90,900 (to the nearest dollar)