For the purpose of accounting, there are three types of expenditure. These are Capital Expenditure, Revenue Expenditure, and Deferred Revenue Expenditure.
Capital Expenditure is the amount incurred in acquiring long term assets like land, buildings, equipments (which are used for the purpose of earning revenues). These costs are reflected in the account of Property, Plant and Equipment.
Revenue Expenditure is cost incurred in one accounting year wherein the benefits are also enjoyed in the same period only. It does not increase the earning capacity of the business, instead, it maintains the existing earning capacity of said business. This expenditure is recurring in nature like salaries and wages, selling and distribution expenses.
Deferred Revenue Expenditure is a revenue Expenditure which has been incurred within the current accounting year but its benefit will be extended to a number of years. This cost is charged to the Profit and Loss account. Example of this is advertising cost.
Answer:
The answer is A.
Explanation:
All other things being equal, an increase in the cost of production of a product will decrease the units of the product being reduced and this reduction in supply shifts the supply curve to left while a decrease in the cost of production will increase the units of the product being produced and this shifts the supply curve to the right.
Printed circuit boards is one of the materials used to build computers and since the price has increased, the cost of producing computer also increases and this will make the producers to produce less, shifting the supply curve to the left.
Answer:
better understanding how foreign operations affect the company's competitive advantage.
Explanation:
Based on the scenario being described within the question it can be said that Christopher would greatly benefit by better understanding how foreign operations affect the company's competitive advantage. Mostly due to the fact that it would allow Christopher to determine certain aspects or scenarios that the company may not realize and maybe help him climb in the ranks.
Answer:
Results are below.
Explanation:
<u>To calculate the price of each bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
<u>Bond X:</u>
Coupon= (0.11/2)*1,000= $55
YTM= 0.09/2= 0.045
Years to maturiy= 11 years
Bond Price= 55*{[1 - (1.045^-11)] / 0.045} + [1,000/(1.045^11)]
Bond Price= 469.1 + 616.2
Bond Price= $1,085.3
<u>Bond Y:</u>
Coupon= (0.09/2)*1,000= $45
YTM= 0.11/2= 0.055
Years to maturiy= 11 years
Bond Price= 45*{[1 - (1.055^-11)] / 0.055} + [1,000/(1.045^11)]5
Bond Price= 364.16 + 554.91
Bond price= $919.07
Conversion costs are the combination of direct labor costs plus factory overhead costs. Hence, conversion costs exclude the cost of direct materials.
So, here the conversion cost = Direct labor cost + Factory overhead cost
= $ 84,000 + $ 45,500
= $ 129,500
