When accounting for a long-term construction contract under IFRS, if the percentage-of-completion method is not appropriate, the seller should account for revenue using "cost recovery method".
<h3>What is cost recovery method?</h3>
According to the "Cost Recovery Rule," any excess cash value (cost basis) over premium payments that results from a partial withdrawal of cash or a policy surrender is taxable income.
Calculation for cost recovery method includes:
- the product's operating expenses, such as those for hardware, software, and labour, should all be added up.
- Analyse whole revenue, regardless of whether a client made a lump-sum payment or several instalments.
- To calculate the profit, deduct the cost of products from whole sales.
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Answer:
Robert Wallace and Alexander Webster, two scottish drunken ministers invented insurance for orphan and widows. A premium would be paid and invested for profitable purposes. Widows and orphans would be paid out with the return of that money, leaving the premiums to accumulate.
Explanation:
Answer:
The best choice for the United States would be a system in which everyone is covered by insurance, where a public robust option exists, but where there are also private options that can become spcialized in less essential care like comestic plastic surgery, or cosmetic dental care.
For this system to work better and to reduce the high spending in healthcare as percentage of GDP, many managerial jobs in the insurance industry should be cut, and only those that are essential should be kept.
The private options should be kept under a more rigid oversight so that they do not overcharge their users for services or prescription drugs.
Finally, the public option should be robust, insurance every person who cannot afford private insurance, and the government should make sure that it is well-funded.
Falling economic indicators typically signal recession in the economy.
This is further explained below.
<h3>What
are economic indicators?</h3>
Generally, A statistic that pertains to an economic activity might be referred to as an economic indicator.
Indicators of the economy make it possible to conduct analyses of past performance and make projections about future performance.
The examination of different phases of company activity is one use of economic indicators.
In conclusion, Typically, a recession in the economy is indicated when economic indices start to fall.
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Answer:
Option 2 should be selected
Explanation:
Using a rational approach which option most benefit and have a minimum cost. We will use the break-even level here to decide which option should be selected.
Option 1
Price per call = $30
Variable cost per call = $18
Contribution = Sales - Variable cost = $30 - $18 = $12
Fixed Cost = $15,000
Break-even point = Fixed cost / Contribution per call = $15,000 / $12 = 1,250 calls
Option 2
Price per call = $30
Variable cost per call = $18 + ( $30 x 10% ) = $18 + $3 = $21
Contribution = Sales - Variable cost = $30 - $21 = $9
Fixed Cost = $9,000
Break-even point = Fixed cost / Contribution per call = $9,000 / $9 = 1,000 calls
Difference = 1,250 calls - 1,000 calls = 250 calls
Option 2 is better option because it take 250 less calls to reach at break-even in the month. It should be selected.
