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3 years ago

FIFO and LIFO are two common methods used to compute the depreciation of tangible assets. True or false?

Business

1 answer:

IgorLugansk [536]3 years ago

7 0

Answer:

The statement is false

Explanation:

The statement is false as the both the methods that is LIFO and FIFO are the methods of inventory valuation, not for computing the depreciation.

As LIFO (Last in first out), this method involves the inventory which is purchased last is expensed first whereas FIFO (First in first out), this method of inventory valuation, involves the inventory in which the inventory which is purchased first is expensed first.

For computing the depreciation for the tangible assets involves straight line, diminishing or double declining methods.

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Scott Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annua

denpristay [2]

Answer:

It is cheaper to buy the part. The company will save $5,000.

Explanation:

Giving the following information:

UNitary production cost:

Direct Materials $10.50

Direct labor $24.00

Variable factory overhead $ 5.50

Total avoidable Fixed factory overhead= (12*1,000) - 5,000= 7,000

Larson Company has offered to sell 1,000 units of the same part to Scott Corporation for $42 per unit.

First, we need to calculate the total cost of making the units:

Total cost= (10.5 + 24 + 5.5)*1,000 + 7,000= $47,000

Now, the total cost of buying them:

Buy= 1,000*42= $42,000

It is cheaper to buy the part. The company will save $5,000.

3 0

3 years ago

Epa rules require capture of 80% of the refrigerant from a small appliance sealed system with a non-operating compressor if tech

ki77a [65]

Epa rules require capture of 80% of the refrigerant from a small appliance sealed system with a non-operating compressor if technicians are using: <span>Self-contained (active) process. </span>This requirement makes it easier for the technicians to install a safe and environmentally friendly product for the customer and speed up the time of the procedure.

3 0

3 years ago

A team of people is giving a presentation to a client. One member says to a coworker, open double quote"I can't believe we've fi

Alexxandr [17]

Answer:

Letter C is correct. <u>Adjourning.</u>

Explanation:

The stage of adjourning t is characterized by the final stage of project development. When this is over the team disperses, so at this stage there is often a sense of loss by team members, who have formed bonds of rapprochement and friendship throughout the development of the project and at the end of the experience develop a sense of loss.

7 0

3 years ago

In the loanable funds model, an increase in an investment tax credit would create a a. shortage at the former equilibrium intere

Drupady [299]

Answer:

a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate.

Explanation:

The equilibrium in the market for loanable funds is achieved when the quantities of loans that borrowers want are the same as the quantity of savings that savers provide. The interest rate adjusts to make these equal.

6 0

3 years ago

The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,

Umnica [9.8K]

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

NPV = initial outlay + PV of future cash flows

NPV = 0

initial outlay = -$831,500

PV of future cash flows = $831,500 = cash flow x annuity factor

annuity factor = $831,500 / $250,000 = 3.326

using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

So our IRR = 20%

5 0

3 years ago