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Zinaida [17]
3 years ago
9

What are the criteria for distinguishing between a deductible expense and a capital expenditure?

Business
1 answer:
Lelu [443]3 years ago
6 0

The criteria for distinguishing between whether an expenditure is a capital item or a deductible expense is the useful life of the item.

If the purchase is going to be used and no longer have value at the end of the reporting period it is an expense for that period. If the item is a capital item it is going to have a longer useful life. In this case the item is depreciated over its useful life, assigning an expense amount to each accounting period that the item has value.

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When there are economies of scale, (1pts) Question 12 - When there are economies of scale, Select d) output does not affect per-
Tresset [83]

Answer:

per-unit costs decrease as output increases

Explanation:

In simple words, Economies of scale can be understood s the cost benefits that businesses receive as a result of their size of operation. As the expense per unit of production decreases because scale increases. Because expenses are dispersed among a greater quantity of items this occurs.

Thus, from the above we can conclude that the correct option is B.

7 0
3 years ago
Saguaro Company updates its inventory perpetually. Its beginning inventory is $70,000, goods purchased during the period cost $2
Mashutka [201]

Answer:

Ending inventory= 30,000

Explanation:

Giving the following information:

Its beginning inventory is $70,000, goods purchased during the period cost $240,000, and the cost of goods sold for the period is $280,000.

The ending inventory is the cost of the units remaining at the end of the period.

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

280,000= 70,000 + 240,000 - ending inventory

ending inventory= 70,000 + 240,000 - 280,000

Ending inventory= 30,000

4 0
3 years ago
A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is
gizmo_the_mogwai [7]

Answer:

the economic order quantity is 18 units

Explanation:

The computation of the economic order quantity is as follows

Economic order quantity is

= \sqrt{\frac{2 \times annual\ demand \times ordering\ cost}{carying\ cost}  } \\\\= \sqrt{\frac{2\times 1,215\times \$10}{\$75} }

= 18 units

hence, the economic order quantity is 18 units

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
Is defined as the processes that account for an individual's intensity, direction, and persistence of effort toward attaining a
Elanso [62]
The answer is: Motivation
5 0
4 years ago
A corporate bond has a face value of $10,000, a bond interest rate of 8% per year payable semiannually, and a maturity date of 2
Nezavi [6.7K]

Answer:

$400 every 6 months.

Explanation:

Step wise solution is given.

6 0
4 years ago
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