I think the taxes would decrease but increase for the company
Small scale business society can nurture entrepreneurial skills in children
Answer:
The correct answer is A
Explanation:
The formula to compute the present value interest factor using excel is as:
= 1/(1+r)^ n
where
r is the rate
n is number of years
So, in case of A,
The present value interest factor is:
= 1/(1+0.06)^5
= 0.74725
In case of B,
The present value interest factor is:
= 1/(1+0.06)^8
= 0.62741
In case of C,
The present value interest factor is:
= 1/(1+0.06)^10
= 0.55839
In case of D,
The present value interest factor is:
= 1/(1+0.08)^5
= 0.68058
In case of E,
The present value interest factor is:
= 1/(1+0.08)^10
= 0.46319
Therefore, it is highest in option A.
Answer:
The revenue recognition principle
Explanation:
The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and not when cash is received for the service rendered
For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.
Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
