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3 years ago

Revenue expenditures

Business

1 answer:

solmaris [256]3 years ago

4 0

Answer:

Answer A

Explanation:

Revenue expenditures are the expenditures during period in which the asset has been put into its usage. They are often discussed in the context of fixed assets. For instance if a company installs new equipment and has monthly costs of its maintenance, these costs are revenue expenditures. Therefore, they only present additional costs that do not necessarily increase asset's life.

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Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr

Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = $\frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}$

This can even be done by $\frac{Total\:Contribution\:}{Total\:Sales}$

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

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3 years ago

Explain why peccarelli returned to guatemala and describe the goals his team are trying to accomplish.

Leno4ka [110]

The reason why Peccarelli returned to Guatemala was to look for the bodies of a tragedy that happened in his childhood and help identify them. His team’s goals are to talk to the families of the deceased and to give the families closure.

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3 years ago

What is one way you can get singled out as a leader by using body language?

Mashutka [201]

Answer:

Explanation:

In a group meeting or any setting that requires a leader, many body language signs can accidentally cause someone to be singled out or chosen as a leader. Such signs as smiling, making eye contact, good posture, assertive attitude, hand gestures, etc are all body language signs that give off confidence to those around you, and confidence is the main trait of a leader.

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2 years ago

College president Wally contracts with Alice to teach a business law class. Alice does a fine job teaching, but she has an argum

solong [7]

Answer:

Specific performance

Explanation:

Based on the information provided within the question it can be said that in this scenario the order that Wally should seek is known as Specific performance. This is a court order which forces the breaching party to perform the agreed upon act, and by doing so complete the agreed upon specifications set forth by the contract. Failure to do so will find the individual in contempt of court.

6 0

2 years ago

Waterway Corporation purchased a new machine for its assembly process on August 1, 2020. The cost of this machine was $162,900.

satela [25.4K]

Answer:

(a) Straight Line Depreciation for 2020 $ 28,800

(b) Activity Method of Depreciation for 2020 $ 5,616

(d) Double declining balance depreciation for 2021 $ 39,096

Explanation:

Computation for requirement (a) - Straight Line Depreciation for 2020

Straight line method considers depreciation on adepreciable base after considering a salvage value and spreads it evenly over the life of the asset.

Cost of machine $ 162,900

Estimated Salvage Value $ 18.900

Depreciable Basis $ 144,000

Estimated Life 5 years

Straight Line Depreciation for 2020 = $ 144,000/5 = $ 28,800

Computation for requirement (b) - Activity Method Depreciation for 2020

Activity method depreciation considers depreciation over the estimated usage of the asset and multiplies by the usage in a given period. The depreciable basis is after considering the salvage value.

Depreciable basis - same as SL depreciation $ 144,000

Usage Life of the machine 20,000 hours

Machine usage for 2020 780 hours

Depreciation on a per hour basis $ 144,000/ 20,000 = $ 7.2 per hour

Depreciation for 2020 on a usage of 780 hours = 780 * $7.20 = $ 5,616

Computation for requirement (c) - Sum of the years digits for 2021

In a sum of the years depreciation method, the sum of the life of the assets are added and considered as a depreciable life. The salvage value is considered in determining the depreciable basis.

Depreciable basis - same as SL depreciation $ 144,000

Estimated life of the asset 5 years

Sum of the years, (5+4+3+2+1) 15

so the first year depreciation shall be 5/15, the next year 4/15 and so on,

We need to compute the depreciation for 2021 which is the second year, so the formula shall be:

4/15 (remaining useful life) * $ 144,000(depreciable basis) = $ 38,400

Computation for requirement (d) - Double declining balance for 2021

In a double declining balance method the depreciation rate (%) is double that of a straight line method. The subsequent years depreciation is on a reduced balance. No salvage value is considered

The first year's depreciation is calculated

Cost of Machine* (2 * Straight Line depreciation %)

$ 162,900* (2 * 20 %) so the depreciation for 2020 would be

$ 162,900 * 40 % = $ 65,160.

For 2021, which is the requirement in our question, the cost would be the reduced value.

Original Cost of the machine $ 162,900

Double Declining balance Depreciation 2020 $ 65,160

Declining Cost basis for 2021 depreciation $ 97,740

Depreciation @ 40 % $ 39,096

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3 years ago