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3 years ago

Costs of Acquiring Fixed Assets

Business

2 answers:

Zepler [3.9K]3 years ago

8 0

Answer:

The answer is given below:

Explanation:

1.Yes

2.Yes

3.Yes

4.Yes

5.Yes

6. Yes

7.No

8.Yes

9.Yes

10.No

11.No

12.No

As a rule of thumb,those costs which increase the value or useful life of asset should be capitalized where as those costs that are incurred to maintain the usage of asset are revenue expenditure and should be charged to income statement not the asset.

Olegator [25]3 years ago

7 0

Answer:

Yes

Explanation:

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Vault-Tec. has annual fixed costs excluding depreciation of $1,000,000 and variable costs that are 75% of sales. If depreciation

alina1380 [7]

Answer:

Vault-Tec's break-even level of sales ==$3,000,000

Explanation:

Break-even point is the level of activity at which a firm must operate such that its total revenue will equal its total costs. At this point, the company makes no profit or loss.

It is calculated using this formula:

Break-even point (sales) = Fixed cost/c/s ratio.

c/s means contribution to sales ratio

C/s ratio = (sales - variable cost)/sales

C/S is the proportion of sales value that is earned as contribution. its is sales less variable costs.

So if for an instance, variable costs are 60% of sales, then contribution will be 40% of sales i.e (100-60)% .

<em>Now we can apply these concepts to our questions:</em>

c/s =( 100-75)% = 25%

Break-even point( sales) = (1,000,000- 250,000)/25%

= 750,000/0.25

=$3,000,000

<em>Note that depreciation is excluded from the fixed costs because it is a non-cash flow item.</em>

Vault-Tec's break-even level of sales ==$3,000,000

3 0

2 years ago

chapter 9 technology methodical application of scientific knowledge for practical purposes invention product or process which ca

marissa [1.9K]

Innovation can be described as 'new' in that it makes a significant qualitative.

Qualitative research relies on data obtained by researchers from direct observations, interviews, questionnaires, focus groups, participant observations, environmental records, documents, case studies, and artifacts. The data is usually not numeric.

Qualitative data describe a quality or characteristic. Collected through questionnaires, interviews, or observations, they are often presented in the form of narratives. For example, notes made during a focus group on Cafe Mac food quality, or responses to public surveys.

Learn more about Qualitative here:

brainly.com/question/8064831

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1 year ago

Dallas Boot Corporation has been asked to submit a bid on supplying 1,000 pairs of military combat boots to the Armed Forces Tra

Kipish [7]

Answer:

Dallas Boot Corporation

Assuming that there would be no commission on this potential sale, the lowest price the firm can bid is some price greater than:_________

= $20.

Explanation:

a) Data and Calculations:

Pairs of military combat boots on the bid = 1,000

Direct material $8

Direct labor 6

Variable overhead 3

Variable selling cost (commission) 3

Fixed overhead (allocated) 2

Fixed selling and administrative cost 1

Total cost of production and sales $23

Less commission 3

Total cost per boot $20

b) The bidding price less sales commission will be a price that is greater than $20 per boot. The extra amount per boot will cover the profit expected from the transaction.

7 0

2 years ago

In San Francisco there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is inf

Verdich [7]

In San Francisco, there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is influenced by factors such as tastes, price, and location. This market is option (b) i.e, monopolistically competitive.

<h3>What is monopolistically competitive?</h3>

An industry with a lot of companies offering similar (but not identical) replacement goods or services is known as one with monopolistic competition. In a monopolistic competitive industry, there are few barriers to entry and exit, and no firm's decisions directly affect those of its rivals.

Monopolistic competition is characterized by a number of features.

slight variations in the goods and services,
Free access to the market and exit
many businesses
Profits from incomplete consumer knowledge

Consumer electronics, apparel, restaurants, and hair salons are a few examples of industries with monopolistic competition. Each business delivers goods that are comparable to those of other businesses in the same sector. They can, however, set themselves out through branding and marketing.

To know more about monopolistic competition refer to: brainly.com/question/13686157

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6 0

1 year ago

When the workers in a workshop encounter operating difficulties or breakdowns while handling their machinery, they seek the help

omeli [17]

Answer:

D. Technical problem solver.

Explanation:

A leader or a manager acts as a technical problem solver in the place where they make and implements decisions that will solve the problem faced by his subordinate at different levels or process of carrying out their duties

As a technical problem solver, managers performs individual contributor tasks on a regular basis, such as repairing machinery.

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3 years ago