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2 years ago

Costs of Acquiring Fixed Assets

Business

2 answers:

Zepler [3.9K]2 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]2 years ago

7 0

Answer:

Yes

Explanation:

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Lupe made a down payment of $2200 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a

BlackZzzverrR [31]

Answer:

Cash price of the car

= Down payment + A(1 - <u>(1+r/m)</u>-nm

r/m

= $2,200 + $200(1-<u>(1+0.11/12</u>)-4x12

0.11/12

= $2,200 + $200(1-<u>(1+0.0091666667</u>)-48

0.0091666667

= $2,200 + $200(1-(<u>1.009166666667</u>)-48

0.0091666667

= $2,200 + `$200(38.691421)

= $9,938

Explanation:

The cash price of the car is equal to the down payment plus the present value of the monthly installment. The present value of the monthly installment is obtained by using present value of annuity formula.

7 0

2 years ago

The risk-free rate of return is 10.5%, the expected rate of return on the market portfolio is 17%, and the stock of Xyrong Corpo

nadezda [96]

Answer:

$88.24

Explanation:

The computation of the intrinsic value of a share of Xyrong stock is shown below;

k = risk free rate of retunr+ beta[expected market rate of return - risk free rate of return]

= 10.5% + 1.5(17% - 10.5%)

= 20.25%

Now

growth rate = b × ROE

= .5 × 24%

= 12%

Now the intrinsic value of the stock is

= (($13 × 50%) × (1 + 0.12)) ÷ (0.2025 - 0.12)

= $88.24

5 0

2 years ago

Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers ne

Gekata [30.6K]

Answer:

$22,500

Explanation:

The computation of the total cost saving is shown below:

= Cost saving × number of zippers needed

= $0.25 × 90,000 zippers

= $22,500

We simply multiply the cost saving with the needed zipper so that accurate amount can come

The cost saving would be

= Outside supplier price - transfer price

= $3.50 - $3.25

= $0.25

All other information which is given is not relevant. Hence, ignored it

8 0

2 years ago

Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their

gizmo_the_mogwai [7]

Answer:

suppliers (or vendors)

Explanation:

Supply chain management refers to how the company manages:

the distribution and storing of materials needed to manufacture a product (upstream)
the inventory management of materials, components and final goods
the distribution of finished goods to final customers using different downstream channels (wholesalers, retailers, etc.)

4 0

2 years ago

The purpose of safety stock is to: A. eliminate the possibility of a stockout. B. control the likelihood of a stockout due to v

NeX [460]

<h3>Hello there!</h3>

Your question asks what the purpose of a safety stock is.

<h3>Answer: B). control the likelihood of a stock out due to variable demand and/or lead time.</h3>

The reason why answer choice "B). control the likelihood of a stock out due to variable demand and/or lead time" is the correct answer because companies have safety stocks to control the chances of having a stock out.

Safety stocks are also known as a "reserve" for a company, in other words, stocks that a company doesn't touch. It's to ensure that companies don't go through a time where there's an increase in demand while there is a "delay" in production.

If a companies stock demand goes up, but then they can't "produce" the amount that is needed to meet the demand, then they will go through "stock out" and have to go through what is called "stock out costs."

Safety stocks are also known as a "rainy-day" stock, due to the fact that safety stocks are used when a company are not having a great day with the "demand" / "value" of their stocks. It's just to "ensure" / "keep the company safe" from a huge stock out.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>

6 0

2 years ago