The formula for annual depreciation by means of the units-of-production method is:
(depreciable cost / estimated output) x the actual yearly output
Under the units of production method, the quantity of depreciation indicted to expense differs in direct proportion to the amount of asset usage. Therefore, a business may charge more depreciation in times when there is more asset consumption and less depreciation in times when there is a smaller amount of usage. It is the most precise method for indicting depreciation as this method relate thoroughly to the wear and tear on assets. Though, it also needs that someone should track asset usage which means that its use is commonly restricted to more luxurious assets. It needs estimation of the total usage over the life of the asset in order to come up with the amount of depreciation to identify in separate accounting period.
The price of related goods is one of the other factors affecting demand. a. Related goods are classified as either substitutes or complements. ... An increase in the price of a good will increase demand for its substitute, while a decrease in the price of a good will decrease demand for its substitute.
The Franchiser under the franchise contract allows the franchisee to sell products and services under its business name.
Explanation:
- A franchise can be defined as a type of contractual arrangement or license that a party (Franchisee) acquires which allows the franchisee to have access to the proprietor's knowledge, process, and trademarks.
- whenever a business house intends to expand its geographical reach by incurring less expense it creates a franchise for its product and services
Answer:
business analysis
Explanation:
Business analysis -
It helps to determine the need of the business and give a apt solution for the problem in the business , is known as the business analysis .
The person carrying out the function of business analysis , is refereed to as a business analyst .
hence , from the question , the mangers are conducting business analysis .
Answer:
$1,000
Explanation:
The computation of gain on sales is given below:-
Depreciation per year = $40,000 - $10,000 ÷ 10
= $3,000
Life of equipment = 5.5 years
Accumulated Depreciation on equipment = 5.5 × $3,000
= $16,500
Book value of equipment = $40,000 - $16,500
= $23,500
Gain = Proceed from sale - Book value at the time of sale
= $24,500 - $23,500
= $1,000