Answer:
A. $5,000 of depreciation expense on its income statement.
Explanation:
Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.
Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.
It does not included fixed cost like depreciation.
As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.
Therefore, the correct option is
A. $5,000 of depreciation expense on its income statement.
Answer:
D. Land and construction costs are comparatively less expensive in Russia than in Canada
Explanation:
Option D would favor Russia ahead of Canada because of the fact that manufacturing costs are cheaper and they have easier access to Capital. I came to this conclusion since it has been stated that land and construction costs are cheaper in Russia.
In Economics the goal of every firm is to minimize cost and to maximize profit. Option D is cost minimizing for cool cars if they want to duplicate their overall success.
Answer:
C) 0.5 USD
Explanation:
Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.
Answer: The following statements is false: <u><em>Mutual aid and assistance arrangements and Memorandums of Understanding (MOUs) cannot be used for supplementing incident staff.</em></u>
The above statement is wrong since mutual aid, assistance arrangements and memorandums of understanding can be used for supplementing incident staff.
<u><em>Therefore, the correct option is (c).</em></u>
