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MAVERICK [17]
3 years ago
13

To what extent do cost recovery deductions based on the capitalized cost of a tangible asset reflect a decline in the economic v

alue of that asset?
Business
1 answer:
sladkih [1.3K]3 years ago
7 0

Answer:

Cost recovery deductions do not have relationship to any decline in value of the property to which the deduction relates.

Explanation:

Capitalised costs are the cost that is incurred when building and financing a fixed asset. For example labour cost in building and financing an asset.

These expenses are added to the cost of the asset (capitalised) and taken gradually over time through depreciation, depletion, and amortization. They are not taken out of revenue in the period when they were incurred.

So cost deductions through capitalised cost is not related to the value of the asset but is an expense that is incurred in relation to the asset, and it's payment is spread out over time.

For example if $1,200 is incurred on construction of an asset worth $500,000. If $1,200 is capitalised over 12 months $100 will be deducted each month from expense. This does not affect the value of the asset ($500,000).

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Demand-pull inflation is caused by: An increase in aggregate supply. An increase in resource costs as an economy's production ca
frosja888 [35]

Answer:

Excessive aggregate demand in relation to an economy's production capacity.

Explanation:

  • The demand and the pull is the upward movement in the prices that follows a shortage in supply.  As per the economists, they describe it as the too many dollars that are followed by too few goods.  
  • Thus when the combined demand in the economy strongly is outweighed by the combined supply and thus the prices tend to go up. Hence the excessive increase of the demands pulls up the production capacity.
5 0
3 years ago
Manufacturing costs do not include: Multiple Choice Direct labor applicable to production within the period. Selling expenses re
-Dominant- [34]

Answer: The <em>manufacturing costs don't include selling expenses related to goods manufactured during the period.</em>

Explanation:

Manufacturing costs by definition are the sum total of direct labour (labour charges paid for production), direct material (raw material expenses paid for producing the goods) and manufacturing overheads (other manufacturing expenses like fuel charges and accounting costs for recording manufacturing  processes etc). These costs are calculated for work in progress and finished goods.

Thus manufacturing costs= Direct Labour + Direct Material + Manufacturing Overheads.

So, thereby looking at the options <em>manufacturing costs don't include selling expenses related to goods manufactured during the period.</em>

7 0
3 years ago
A list of skills, abilities, education, and experience required for a position is called a job analysis.
Zarrin [17]
True. because it analyzes ones abilities to do certain things so they can qualify for different positions.
8 0
3 years ago
On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and
Marrrta [24]

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

7 0
2 years ago
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the comp
Vilka [71]

<u>Answer</u>:

<u>Should create a non disclosure agreement policy</u>

<u>Explanation:</u>

This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.

Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.

8 0
3 years ago
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