1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kazeer [188]
2 years ago
7

Consider the expenditures listed below and classify each of the expenditures as a capital expenditure or a revenue expenditure r

elated to machinery.
a.

Purchase price.

b.

Ordinary recurring repairs to keep the machinery in good working order.

c.

Lubrication before machinery is placed in service.

d.

Periodic lubrication after machinery is placed in service.

e.

Major overhaul to extend useful life by three years.

f.

Sales tax paid on the purchase price.

g.

Transportation and insurance while machinery is in transit from seller to buyer.

h.

Installation.

i.

Training of personnel for initial operation of the machinery.
Business
1 answer:
Bingel [31]2 years ago
4 0

Answer:

a.  Purchase price.  This is capital expenditure.

b.  Ordinary recurring repairs to keep the machinery in good working order.   This is revenue expenditure

c.  Lubrication before machinery is placed in service.  This is revenue expenditure.

d.  Periodic lubrication after machinery is placed in service.  This is revenue expenditure.

e.  Major overhaul to extend useful life by three years.  This is capital expenditure.

f.  Sales tax paid on the purchase price.  This is capital expenditure. However, if sales tax is refundable than this will neither be classified as capital expense nor revenue expense.

g.  Transportation and insurance while machinery is in transit from seller to buyer.  This is capital expenditure.

h.  Installation.  This is capital expenditure.

i.  Training of personnel for initial operation of the machinery. This is revenue expenditure.

Explanation:

The costs that are charge as expense in profit and loss statement in the period in which thay are incurred are known as revenue expense.

The costs that are capitalized initially and expensed out as benifits, are derived from it, are classified as capital expenditure.

You might be interested in
Left, right, center,and justify are types of what
forsale [732]

Answer:

Justified Alignment

Explanation:

The type of text alignment that is frequently seen in newspaper,magazines,and books(both the left and the right sides of the paragraph are perfectly straight).I'm sorry if it was wrong.

brainliest plz ;-;

8 0
2 years ago
Synovec Corporation is expected to pay the following dividends over the next four years: $6.60, $17.60, $22.60, and $4.40. After
Alexandra [31]

Answer: $245

Explanation:

If the required return on the stock is 7 percent, the current share price would be calculated as:

= 6.60/1.07 + 17.60/1.07^2 + 22.60/1.07^3 + 4.40/1.07^4 + [(4.4 × 1.0525) / (7%-5.25%)] / 1.07^4

= $245.23

= $245 approximately

Therefore, the current share price will be $245

3 0
3 years ago
The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting th
ivanzaharov [21]

Answer: C. $250

Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.

Labour cost per day of hiring two workers = $80 x 2 = $160

Total cost per day when three

workers are hires. This includes both the fixed cost and labour cost

Total Cost = fixed cost + labor cost

= $250 + $80 x 3

= $490.

4 0
3 years ago
Which of the following is not considered when you are calculating cost of quality?
enyata [817]

Answer: The following is not considered when you are calculating cost of quality:<u><em>  The cost of gaining formal acceptance of project deliverable.</em></u>

Cost of Quality contains all the costs that are both internal and external to the system; whereas, the Cost of Quality include the conformance, considering any costs connected with both appraisal and interference.

Cost of Quality is calculated as :

Cost of Quality = Cost of Poor Quality  + Cost of Good Quality

4 0
3 years ago
A difference between people-processing services and possession-processing services is that possession-processing services:
Contact [7]

Answer:

b. do not require customers to enter the service factory.

Explanation:

Possession processing involves tangible services provided on property belonging to a customer. It involves activities like lawn mowing, cleaning services. The property that is recoevong the action must be present but the customer does not need to be.

In people processing on the other hand, the customer is present and services provided are intangible, knowledge based, and customised to each client. For example retail banking services.

3 0
3 years ago
Other questions:
  • True or False: A rebate and a discount are the same.
    9·1 answer
  • If you were an engineer of an actual roller coaster, what information would you need to know in order to ensure that your coaste
    6·2 answers
  • The daily grind operates a chain of coffee shops. the company pays rent of $20,000 per year for each shop. supplies (napkins, ba
    9·1 answer
  • A firm achieves differentiation parity ideally when
    11·1 answer
  • Ms. Crocker bought 1,000 shares of EMO Corporation stock for $10,000 on January 20, 2017. On December 28, 2018 she sold all 1,00
    10·1 answer
  • You added a conversion tracking tag to a landing page on your business's website. When analyzing your purchasing data, you find
    14·1 answer
  • The following items are components of a traditional Balance Sheet. How much are the total assets of the firm?
    13·1 answer
  • Consider the following
    9·1 answer
  • International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,0
    9·1 answer
  • The smith sneaker corporation wants to make a minimum profit of 30% on its newest running shoe. To set the selling price for the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!