Answer:
Explanation:
A capitalized cost of an asset is made up of
1 . Purchase price import duties and non refundable taxes less trade discount and rebate
2. Direct cost of bringing the asset to its present position
3. Fair value given in exchange for the the assets
Cost of Computer
Purchase Price - $10,000
Fair value of White common stock - $4,200
Installation cost - $ 700
Shipping cost - $ 500
Total Cost - $15,400
Answer:
E. $78
Explanation:
The computation of the net present value is shown below:
Net present value is
= Initial investment + year cash inflows ÷ (1 + discount rate)^number of years + year cash inflows ÷ (1 + discount rate)^number of years
= -$150 + $175 ÷ 1.15 + $100 ÷ 1.15^2
= $77.78
= $78
Hence, the correct option is E. $78
Answer:
$7,200
Explanation:
Expense can be defined as the cost incurred by an organisation as it tries to generate revenue in its daily activities.
It is the cost of doing business, and is the sum total of cost incurred for all activities geared at making profit.
So in this instance Clark was visiting work sites for the company, he leased a car for $4,500 and spent $2,700 on fuel. The sum total is $7,200 and this is the amount he will deduct as business expense.
Answer:
c. determining how managers are performing against prior year's operating results.
Explanation:
Management compare actual performance against planned goals to enable them evaluate deficiencies in the actual performance which can give directions to areas that should be improved upon. Moreover, comparing actual performance and planned goals expose deficiencies in the system which management would take into consideration when making future plan hence eliminate unplanned expenditures.
Again, there is also identification of priorities to accomplish objectives when actual performance are compared against planned goals.
