An example of a cost is ____

Management should select the depreciation method that

GuDViN [60]

Answer:

Option B

Explanation:

Depreciation refers to an accounting tradition that enables a firm to compose off the worth of an asset throughout an amount of time, generally the beneficial life of the investment.

Assets like equipment and appliances are costly. Instead of recognizing the asset's full cost in the first year one, depreciating the asset helps businesses to distribute the burden and generate income from it.

Thus, depreciation relates to decrease in value of an asset so that expenses can be recorded efficiently and revenue could be computed as per the periods. Therefore, the method of depreciation should be chosen as per its revenue contribution to the entity using it.

7 0

4 years ago

Nash Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitche

charle [14.2K]

Answer:

Date Account Title and Explanation Debit Credit

2020 Inventory of premium $7,480

Cash $7,480

(To record the purchase of 8,800 premium at $0.85 each)

Date Account Title and Explanation Debit Credit

2020 Cash $333,300

Sales revenue $333,300

(To record sale of 101,000 boxes at $3.30 each)

Date Account Title and Explanation Debit Credit

2020 Premium Expenses $3,570

(42,000 * 0.1 * 0.85)

Inventory of premiums $3,570

(To record premium redemption)

Date Account Title and Explanation Debit Credit

Year end Premium expenses $1,581

2020 Premium liability $1,581

Workings

Particulars Amount

Estimated redemption on number of boxes sold 60,600

= 101,000 * 60%

Less: Coupon already redeemed 42,000

Premium liability of coupons 18,600

Cost of premium liability = 18,600 * 10% * 0.85

Cost of premium liability = $1,581

4 0

4 years ago

Giant Company has three products, A, B, and C. The following information is available:

myrzilka [38]

Answer:

$24,000

Explanation:

Product A Product B Product C

sales 70,000 97000

Variable cost 37000 51000

Contribution margin 33000 46000

Avoidable cost 10,000 20000

Unavoidable cost 7000 12000 9400

Operating income 16000 14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

7 0

3 years ago

Jack holds an ownership interest of 59% and Teresa holds an ownership interest of 41% in the J and T Partnership. This year,

tatiyna

Answer:

Jack holds an ownership interest of 59% and Teresa holds an ownership interest of 41% in the J and T Partnership. This year, in order to further develop the business, Jack contributes an additional $ 7,200 and Teresa contributes an additional $ 2, 900 to the partnership. Which of the following is true of this scenario - the $7,200 by Jack and $2,900 by Teresa will be recorded as an individual contribution - option A

Explanation:

Based on the information given by the question, there would be an addition to Jack and Teresa's capital, since the individual contribution is being done by jack and teresa.

Therefore, the $7,200 by Jack and $2,900 by Teresa will be recorded as an individual contribution - option A.

4 0

3 years ago

Sonya is the database administrator for RedTriangle media. She is responsible for validating the data model to be used by the DB

iragen [17]

Answer: Development task

Explanation:

Development task is basically refers to the predictably stage of the project which is associated with the next period of development stage.

In the development stage, the project are being developed by using new technology and the services for overcoming the existing project drawbacks. It is basically developed by the Robert Havighurst in the year 1948.

Therefore, the above given situation is best example of the development tasks.

5 0

4 years ago

An example of a cost is _____.