Answer:
A. True
Explanation:
In the case of absorption costing, the fixed manufacturing overhead should be incurred at the time when the units are generated or produced. While on the other hand, in the case of variable costing the fixed manufacturing overhead should be incurred at the time when the units are sold
Therefore the given statement is true
Hence, the correct option is a.
Answer: A. Wages or rent
Explanation: A business partnership is an association of two or more people to conduct a business. The partners pool their funds and also partake in profits or losses that might result in running the business. The contract of a partnership that states that one exist could be express or implied, written or oral.
Generally, the receipt of profits from a business is evidence of a partnership. However, when it is repayment of a debt, wages, rent, or an annuity that is received as a share of profit, such transactions do not lead to a legal inference that a partnership exists since they are considered “protected relationships”. Therefore, evidence of sharing profits is prima facie evidence of partnership existence unless the profits are wages or rent.
Answer:
D. a rise in the gas tax makes the supply of gasoline more elastic so most of the rise in the gas tax is paid primarily by consumers, which jeopardizes the re-election of politicians
Explanation:
First of all, the demand for gasoline products is normally deemed as <em>relatively inelastic</em>, which means that the <u>percent of change in consumer demand is lower than the percent of change in the price of goods.</u>
If the gas tax and thus overall gas price becomes higher, gas supply will become slightly more elastic (not to a great extent, as gas is a limited resource).
<u>Tax inference</u> is a term implying the distribution of the tax burden between the supplier and consumer. In this case, we have a similar demand and supply elasticity. A general rule is that if we have an <em>elastic supply</em>, but <em>inelastic demand</em>, the tax is almost entirely paid by the consumer.
Even though this example shows a similar level of elasticity for both supply and demand, the bigger share of the tax burden still goes to the consumer, as the supply is still more elastic than the demand.
Therefore, imposing such taxes (no matter the reason), can provoke controversy in public discourse and create instability to the position of the politicians who made such decisions.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
A company is considering a project which requires a $2 million capital investment.
The project can bring in annual revenue of $170k for the next 25 years.
The annual operation cost is $10k.
Starting from year 20, the equipment will need major maintenance and this cost starts at $5k and increases by 5k each year until the end of the project lifetime (25 years). The equipment has a salvage value of $100k at the end of the project.
The interest rate is 6%
n
<h3>NFV= Io - ∑[Ct*(1+i)^n] </h3>
t-1
Io= initial investment
Ct= cashflow of the period
i= interest rate
n= number of period until the end
NFV= -2,010,000 + [170000* (1.06^25)] + [170000*(1.06^24)] + .... +
NFV= $2,067,453.755
