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3 years ago

In the first year of an asset's life, which of the following methods has the smallest depreciation?

Business

1 answer:

Lubov Fominskaja [6]3 years ago

3 0

Answer:

d. Straight-line.

Explanation:

Depreciation: Depreciation is an expense indicating a reduction in the value of fixed assets due to tear and wear, obsolescence, usage, time period, etc. It is shown on the income statement debit line. It is a non-cash item not impacting the cash balance.

In the straight-line method, the depreciation expense would be lowest in this method and it remains the same for the remaining useful life

In the double-declining method, the depreciation rate is doubled and contain the highest value

In the sum of the year digit, we sum the useful life like 5 years so we sum 5+4+3+2+1 = 15 years and divide it to the useful life i.e 5

In the composite or group, the depreciation is taken for the group, not for the individual company

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Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Lei

kifflom [539]

Problem: Total of Leiff's online purchase
Given: $ 128 for video game
5.3% discount price of the video game
$4.75 shipping fee
15% promotion for more the $50 orders

Solution:
Total = [(85% x 128 )+ (5.3% x 85% x 128) + 4.75]
= 108.80 + 5.78 + 4.75
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3 years ago

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a

Alex777 [14]

Answer:

annual demand = 1,215 bags of flour

ordering costs = $10 per order

annual carrying costs = $75 per bag

a. Determine the economic order quantity.

EOQ = √[(2 x S x D) / H]

EOQ = √[(2 x $10 x 1,215) / $75] = 18 bags of flour

b. What is the average number of bags on hand?

average number of bags on hand = 18 / 2 = 9

c. How many orders per year will there be?

total number of orders per year = 1,215 / 18 = 67.5 orders

d. Compute the total cost of ordering and carrying flour.

total cost of ordering flour = 67.5 x $10 = $675

since we assume that the company keeps operating after the year ends, we can use fractions when calculating the number of orders per year

total cost of carrying flour = 9 x $75 = $675

total cost of ordering and carrying flour = $1,350

3 0

2 years ago

Ashton Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materi

Dimas [21]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In December 2016, Ashton budgeted 2017 assembly-support costs to be $8,300,000 and 2017 direct labor-hours to be 166,000.

With this information, we can calculate the budgeted indirect cost rate. However, we can't calculate the actual indirect cost rate. I will provide the formula for both and a small example of the actual indirect cost rate.

To calculate the budgeted indirect cost rate, we need to use the following formula:

Budgeted indirect cost rate= total estimated indirect costs for the period/ total amount of allocation base

Budgeted indirect cost rate= 8,300,000/166,000= $50 per direct labor hour.

Let's suppose that actual indirect cost was of 8,000,000 and actual direct labor hours of 175,000:

Actual indirect cost rate= total actual indirect costs for the period/ total amount of allocation base

Actual indirect cost rate= 8,000,000/175,000= $45.71 per direct labor hour

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3 years ago

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mariarad [96]

Answer:

You didn’t provide a list so I came up with possible answers.

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3 years ago

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IgorLugansk [536]

Answer:

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3 years ago