Answer:
matching principle
Explanation:
The matching principle in accounting basically states that you must record expenses or costs in the same period as you record revenues associated to them. I.e. the use of assets generates revenue, therefore, you must expense that use at the same time when you record revenues.
US GAAP accepts 4 depreciation methods:
- Straight line method
- Declining balance method
- Units of production method
- Sum of years' digits
Answer:
a) crowd sourcing carries fewer risks
Explanation:
<u>Crowd sourcing:</u> The term "crowd sourcing" is described as a phenomenon that encompasses the procedure of sourcing skills or information or some end products from a particular group or groups of different people.
<u>Crowdfunding:</u> The term "crowdfunding" is described as a phenomenon that encompasses the procedure of sourcing funds or money from a specific group of groups of different people.
<u>In the question above, the correct answer is option a.</u>
Answer:
Incremental cost= $61,875
Explanation:
Giving the following information:
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit
We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.
Make in house:
Cost= 49,500*5.15= $254,925
Buy:
Cost= 49,500*3.90= $193,050
Incremental cost= 254,925 - 193,050= $61,875
Answer:
Schedule E of Form 706
Explanation:
Form 706 is filed by the executor to compute the estate of the deceases and to compute generation skipping taxes. Schedule E of form 706 is filled to estimate taxes due on jointly held property by the deceased and the survivor. The survivor could be spouse or any other family member who have joined tenancy. If property is held in joint tenancy with spouse, then full amount of fair market value of asset is reported.
If property is held in joint tenancy with some other family member, then decedent's share of fair market value of the property is reported and proportion of the amount the member has contributed against the right to hold joint tenancy.
Here, decedent and her brother jointly owned 300 shares. So, this should be reported in Schedule E of form 706