What’s the lifo method?

To what extent do cost recovery deductions based on the capitalized cost of a tangible asset reflect a decline in the economic v

sladkih [1.3K]

Answer:

Cost recovery deductions do not have relationship to any decline in value of the property to which the deduction relates.

Explanation:

Capitalised costs are the cost that is incurred when building and financing a fixed asset. For example labour cost in building and financing an asset.

These expenses are added to the cost of the asset (capitalised) and taken gradually over time through depreciation, depletion, and amortization. They are not taken out of revenue in the period when they were incurred.

So cost deductions through capitalised cost is not related to the value of the asset but is an expense that is incurred in relation to the asset, and it's payment is spread out over time.

For example if $1,200 is incurred on construction of an asset worth $500,000. If $1,200 is capitalised over 12 months $100 will be deducted each month from expense. This does not affect the value of the asset ($500,000).

7 0

3 years ago

When an employee's behavior does not improve over time through progressive disciplinary measures, ____ is the final option.

Hunter-Best [27]

Answer:

Discharge.

Explanation:

This is seen to be a formal way of relieving an employer off his duties due to many wrong reasons which can be easily tagged misconduct. This is is not the first step of the disciplinary action as verbal warnings and other written warnings must have been sent to the said employee(s) before dismissal. Which is seen to be the final step by the employer. Some employees are seen to try to appeal this termination as most cases is seen to be failed attempts as their cases has already been settled by the panel.

8 0

3 years ago

Which one of the following statements about private goods is true? (WITH EXPLANATION PLEASE)

sergey [27]

C because some people can not afford to buy private goods which leads them to be excluding them from the products a firm makes

6 0

3 years ago

By studying, Will can produce a higher grade, , on an upcoming economics exam. His production function depends on the number

Paul [167]

Answer:

c. 2.5A^0.36R%0.64/R.

Explanation:

Marginal productivity is the increase in amount of one unit of output with the one unit increase of input. Will can produce higher grade when he studies more hours. His grade will increase by one level when he studies more. His grade production function is the level of increase in his output.

6 0

3 years ago

Brooklyn Cabinets is a manufacturer of kitchen cabinets. The two cabinetry styles manufactured by Brooklyn are contemporary and

Anna11 [10]

Answer:

a) Objective Function:

P = $18.6x + $13.9y

b)

1. 2x + 2.5y $\leq$ 3000 For Carpentry

2. 1.5x +1.0 y $\leq$ 1500 For Painting

3. 1.3x + 1.2y $\leq$ 1500 For Finishing

c)

x $\geq$ 500

y $\geq$ 650

Explanation:

Data Given:

Contemporary Style Cabinets Sells For = $90

Farmhouse Style Cabinets Sell For = $85

Hours per process:

For Contemporary:

Time for Carpentry = 2.0

Time for Painting = 1.5

Time for Finishing = 1.3

Similarly,

for Farmhouse Cabinet style:

Time for Carpentry = 2.5

Time for Painting = 1.0

Time for Finishing = 1.2

Costing for Processes:

Carpentry = $15/hr

Painting = $12/hr

Finishing = $18/hr

Availability of hours in the week:

Carpentry = 3000 hours

Painting = 1500 hours

Finishing = 1500 hours

Orders for Cabinets in the week:

Contemporary Cabinets = 500 units/week

Farmhouse Style = 650 units/week

Suppose,

x = number of contemporary style cabinets

y = number of Farmhouse cabinets

Step 1:

We need to calculate the total cost of the cabinets first.

Cost of Contemporary Style:

(2 x $15) + (1.5 x $12) + (1.3 x $18) = $71.4/cabinet

Similarly,

Cost of Farmhouse Style:

(2.5 x $15) + (1 x $12) + (1.2 x $18) = $71.1/cabinet

We know that the selling price of Contemporary and Farmhouse cabinets is $90 and $85 respectively. So, we can calculate the profit of both the cabinets.

For Contemporary Style:

Profit = ($90-$71.4) =$18.6

For Farmhouse Style:

Profit = ($85-$71.1)= $13.9

a) Objective Function for the maximization of the profit:

We know that x represents contemporary style and y represents farmhouse style. So, the profit is the basically the objective function. So.,

Objective Function:

P = $18.6x + $13.9y

b) Mathematical Expression for the constraints, which are:

1. 2x + 2.5y $\leq$ 3000 For Carpentry

2. 1.5x +1.0 y $\leq$ 1500 For Painting

3. 1.3x + 1.2y $\leq$ 1500 For Finishing

c) Mathematical Expression for Contracts:

x $\geq$ 500

y $\geq$ 650

3 0

3 years ago