Answer:
the first year depreciation using MACRS depreciation is $28,580
Explanation:
The computation of the first year depreciation using MACRS depreciation is given below:
Here the depreciation rate is 14.29% for the first year
And, the cost of the wood chipper is $204,000
So, the first year depreciation expense is
= $204,000 × 14.29%
= $28,580
Hence the first year depreciation using MACRS depreciation is $28,580
Answer:
<u>A Star.</u>
Explanation:
The Boston Consulting Group (BCG) matrix depicts a product's market share against the market growth rate. The matrix is also known for it's cow- dog metaphor.
The matrix represents 4 situations namely:
1. Stars : Products with high market share in high growth markets i.e high- high situation.
2. Cash Cows: Products with high market share in low growth markets.
3. Question Mark: Products with low market share in a high growth markets.
4. Dogs: Products with low market share in low growth markets.
In the given case, the product dominates the market i.e high market share. Secondly, it operates in a high growth market. Which means, the product belongs to the situation of a Star.
Answer:
c. factory overhead.
Explanation:
Selling and administrative expenses can be defined as the operating expenses which comprises of all the costs incurred in the smooth running of a business.
Selling and administrative expenses include all of the following shipping document preparation, post-sale technical support, and customer return processing except factory overhead.
A factory overhead can be defined as the amount of money incurred by a company or business entity in the course of its manufacturing process.
This ultimately implies that, factory overhead refers to cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
The factory overhead costs include costs such as indirect labor, rent, depreciation, utility bills, property taxes etc.
Answer:
The correct answer is option B.
Explanation:
The rate of interest is given at 7%.
The rate of inflation is given at 3%.
This implies that the purchasing power is decreasing by 3% due to inflation. But it is also rising by 7% due to interest rate.
Since the increase in purchasing power is greater than decrease. After repayment the lender will have more purchasing power than he/she loaned out.