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3 years ago

Which quality of an asset makes it more appropriate for the fair value principle rather than the historical cost principle?

Business

1 answer:

Alchen [17]3 years ago

8 0

Answer and Explanation:

Fair value refers to the current market price of the asset while historical cost is the cost at which the asset was acquired. Fair market value will always be higher than historical cost so it reflects the actual worth of the asset.

One of the qualities that makes valuing current assets at fair value rather than historical cost is the availability and reliability of current market price or fair value of current assets.

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A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper Fixed costs Variabl

shtirl [24]

Answer:

Results are below.

Explanation:

Giving the following information:

Fixed costs= $192,000

Unitary variable cost= $320 per week

Selling price per unit= $480 per week

<u>To calculate the total cost, we need to use the following formula:</u>

Total cost= fixed costs + unitary variable cost*number of units

Total cost= 192,000 + 320*number of weeks

<u>Now, the total revenue:</u>

Total revenue= selling price per week*Number of weeks

Total revenue= 480*x

<u>Finally, the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 192,000 / (480 - 320)

Break-even point in units= 1,200 campers

3 0

3 years ago

How will an increase in labor productivity affect equilibrium in the labor market?

IRINA_888 [86]

We can actually infer here that an increase in labor productivity will affect equilibrium in the labor market in the following way: The demand for labor will increase and the equilibrium wage and quantity of labour will increase.

<h3>What is equilibrium?</h3>

Equilibrium refers to the state whereby opposing things are balanced in order to achieve a desired outcome.

If the labor productivity is increased, it will definitely affect equilibrium in the labor market in such a way that the demand of labor will increase.

Learn more about equilibrium on brainly.com/question/517289

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8 0

2 years ago

I got a question for dudes

Nataly [62]

Answer:

what

Explanation:

7 0

3 years ago

Activity-based costing systems:

Harlamova29_29 [7]

Answer:

The correct answer is letter "B": Often reveal products that were under- or over-costed by traditional costing systems.

Explanation:

Activity-Based Costing or ABC is a managerial accounting method that assigns certain indirect costs to the products incurring the bulk of those costs. ABC is primarily used in the manufacturing sector to make a better calculation of the true cost of production per unit. Compared to the traditional costing method, ABC spots products that could be under-costed or over-costed.

3 0

3 years ago

Reliable Enterprises sells distressed merchandise on extended credit terms. Collections on these sales are not reasonably assure

navik [9.2K]

Answer:

In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.

Explanation:

Under cost recovery method, the amount which is actually received was recorded in the books of the accounts. Rest will not be considered.

The Installment receivables should be computed by a formula which is shown below:

= 2017 Merchandising costing - 2017 sales collection

= $32,500 - $19,100

= $13,400

Thus, In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.

6 0

3 years ago