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umka2103 [35]
3 years ago
5

Franklin designs purchased the patent of a new couch design. the patent had a remaining life of 18 years, so franklin amortized

the cost of the patent over 18 years. however, experts believe that the couch design will only be popular for six years. how will this affect the accuracy of franklin's financial statements?
Business
1 answer:
lys-0071 [83]3 years ago
6 0
<span>If amortisation expenses are spread over 18 years rather than 6 years, amortisation expenses will be lower than they should be. This will cause an increase in net income. In addition, because less of the cost has been expensed, the remaining value of the patent will be too high, thus overstating assets.</span>
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goblinko [34]

Answer:

A. Straight Extension Strategy

Explanation:

Straight Extension product strategy refers to maintaining the same quality, attributes and utility of products both in the domestic and the international market.

This strategy is usually followed for those products which are globally acclaimed and thus need for any alteration or promotion is undesirable as the market for such products has already been created.

As the word suggests, extension means extending the same product globally.

Hence, this is a case of A. straight extension strategy

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If the sales revenue is $150,000 and the margin of safety is $30,000, then the break-even
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A is the correct answer
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List three advantages of buying an existing business
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Buying an established business means immediate cash flow. The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors. You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.

Buying a business is generally considered less risky than starting your own business, especially if you can buy a well-managed, profitable business for the right price. Consider these advantages:

The difficult start-up work has already been done. The business should have plans and procedures in place.
Buying an established business means immediate cash flow.
The business will have a financial history, which gives you an idea of what to expect and can make it easier to secure loans and attract investors.
You will acquire existing customers, contacts, goodwill, suppliers, staff, plant, equipment and stock.
A market for your product or service is already established.
Existing employees and managers will have experience they can share.

8 0
3 years ago
Piper Corporation’s standards call for 1,000 direct labor-hours to produce 250 units of product. During October the company work
jekas [21]

Answer: C. 1200 hour

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It is indeed 1200 hours because the units produced increased by 20% and therefore, theoretically, so should the time.

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Of the four steps in the army pr system, which step encompasses the activities of developing guidance for, providing appropriate
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