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Dmitrij [34]
4 years ago
15

"An expenditure made in connection with a machine being used by a company to produce inventory should be expensed immediately if

it improves the efficiency of the machine but does not extend the useful life." True OR False
Business
1 answer:
Ipatiy [6.2K]4 years ago
4 0

Answer:

True

Explanation:

Efficiency related expenditures are more closely with day-to-day servicing of the machine. Such an expenditure just maintains machine's capacity to save the future economic benefits rather than improve its capacity.

You might be interested in
The following information applies to the questions displayed below) Serendipity Sound, Inc., manufactures and sells compact disc
OlgaM077 [116]

Answer:

  1. $25.50
  2. 90,000 units
  3. 140,000 units

Explanation:

1. Current contribution margin ratio

= (Selling price - Variable cost)/ Selling price

= (25 - 19.8) / 25

= 0.208

New Direct labor = 5.0 * ( 1 + 8%)

= $5.40

New variable cost = 19.8 + 0.4 = $20.20

To maintain 0.208

0.208 = (Selling price - 20.20) / Selling price

0.208 * Price = Price - 20.20

0.208Price - Price = -20.20

-0.792Price = -20.20

Price = -20.20/-0.792

Price = $25.50

2. Breakeven = Fixed Cost / Contribution Margin

Contribution Margin = Selling price - Variable cost

= 25 - 19.8

= $5.20

= 468,000/5.2

= 90,000 units

3. To earn $260,000;

= (Fixed Cost + 260,000) / Contribution margin

= (468,000 + 260,000) /5.2

= 140,000 units

6 0
3 years ago
Required information Kevan, Jerry, and Dave formed Albee LLC. Jerry and Dave each contributed $245,000 in cash. Kevan contribute
steposvetlana [31]

Answer: A: $0.None of the members recognize gain because their debt relief was not in excess of their bases in their LLC interest prior to any debt relief.

B: $55,000

C: $285,000

D: $625,000 Albee, LLC takes a $135,000 carryover basis in the assets Kevan contributes and a $490,000 basis in the total cash the other two members contributed.

Explanation: check attached file

3 0
3 years ago
Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. if lollipops are $1 each and candy
Novosadov [1.4K]
6 lollipops.
3 candy bars.
1 candy bar and 4 lollipops.
2 candy bars and 2 lollipops.
6 0
3 years ago
If the direction in managerial work today is away from command and control, what is it toward?(a) Coaching and facilitating (b)
vagabundo [1.1K]

Answer:

(a) Coaching and facilitation

Explanation:

Coaching refers to polishing the skills of the employees by imparting knowledge and adequate training so that they are able to contribute efficiently as well as perform to their potential.

Facilitation refers to easing out the processes or making complex tasks easier. Facilitation refers to the act of simplifying a task.

Command and control tend to be imperative, domineering and authoritative.  Those two terms also point towards rigidity and inflexibility.

Thus, shift in managerial work from command and control has been towards (a) Coaching and facilitation.

6 0
3 years ago
Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$15,700 1 6,400 2 7,700 3
drek231 [11]

Answer: 2.36 years

Explanation:

Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.

= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)

Add up the cashflows to find the year before payback;

= 6,400 + 7,700

= $14,100

Year before payback = 2

Amount remaining;

= 15,700 - 14,100

= $1,600

Payback period = 2 + (1,600/ 4,500)

= 2.36 years

5 0
3 years ago
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