Answer:
Yeah the granny's right in her own way.
Explanation:
Due to inflation, which means the rise in price of goods and services, the amount that one can buy for their money; known as, "buy for money", and "purchasing power" has reduced. This phenomenon shows that when the price goes up, the quantity that can be purchased for the same price goes down.
This is an interesting relationship between inflation and deflation like mentioned above . Less buy for money (per dollar) during inflation (of price) and vice versa during deflation.
Answer:
False
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
If projects been examined have different initial investments, it doesn't affect comparison between the projects.
Only projects with positive NPV should be chosen and if both projects have a positive NPV, the project with the higher NPV should be chosen
It is only when they have different life spans that comparison might be affected.
Answer: c. $3,960,000
Explanation:
Using the units-of-production method of depreciation, depreciation is done per unit used.
With a residual value of zero, the formula is;
= Cost x Millage used / Useful life mileage
= 55,000,000 x 36,000,000/500,000,000
= $3,960,000
<span>Conversion Cost
You can call this the cost of changing the goods into buyable items . These costs are the blend of direct work costs in addition to assembling overhead expenses.
You can consider conversion costs as the assembling or generation costs important to change over crude materials into items. Communicated another way, conversion costs are a maker's item or generation costs other than the expenses of crude materials.</span>
