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:
Dynamic effect
Explanation:
Social media has a dynamic effect in businesses, customers can easily request for assistance and receive on -the-spot solution. Customer feedback can be given through social media which can now be used to improve service.
Sol Wave House Hotel is using Twitter for quick resolution of customer problems and questions.
The decision of the manager has serious long-term consequences for the firm and does not align with a conscious marketing approach.
<h3>What is a conscious marketing approach?</h3>
A conscious marketing approach is adopted by firm with fairness and honesty over a long-term to ensure safety of shareholders funds, retained earning etc.
However, as he thinks about exaggerating the current earnings just a little, this will have serious long-term consequences for the firm.
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Answer:
$250,000
Explanation:
Book value and fair value of acquired assets and liabilities are given in the attached image.
Given:
Cash paid in exchange of stock = $950,000
Only fair value of assets and liabilities are considered
Goodwill = Cash - fair value of net assets
Fair value of net assets = Fair value of current assets + property, plant and equipment - liabilities
= 125,000 + 750,000 - 175,000
= $700,000
Goodwill = 950,000 - 700,000
= $250,000
This is due to the following reasons:
The curved shape is a representation of the law of diminishing returns. According to this law, there comes a time when an additional production element has less of an impact. Adding more resources to the production process, for example, may result in quite big profits at first.
<h3>What does the production possibility frontier represent?</h3>
- The Production Possibilities Frontier (PPF) is a graph that depicts all of the possible output combinations of two items that can be produced utilizing available resources and technology. The PPF expresses the ideas of scarcity, choice, and tradeoffs.
- A production possibilities curve depicts the possible combinations of two items that an economy can produce. Scarcity is implied by the decreasing slope of the production possibilities curve. The production possibilities curve's bowed-out shape derives from resource allocation based on comparative advantage.
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