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3 years ago

Which of the following is true about depreciation?

Business

1 answer:

Vladimir79 [104]3 years ago

5 0

Answer:

a) Depreciation expense is a special kind of prepaid expense.

Explanation:

Depreciation expense is treated the same way as amortized costs, which are actually a type of "prepaid" expenses. You depreciate an asset over time in a similar manner as you accrue prepaid expenses. Accumulated depreciation and carrying value are not meant to reflect an asset's market value since a can company can choose accelerated depreciation, bonus depreciation or even expensing the asset. Accumulated depreciation is a contra asset account that reduces the asset's carrying value.

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Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring ser

stealth61 [152]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Toot! TiX Total

Users 17,900 24,100 42,000

Administrative costs $ 1,848,000

We need to allocate administrative costs to each product. First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,848,000/42,000

Predetermined manufacturing overhead rate= $44 per user

Now, we allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Toot!= 44*17,900= 787,600

TiX= 44*24,100= 1,060,400

Finally, the gross profit for each service:

Toot!:

Revenue= 2,200,000

Engineering cost= (1,096,250)

Administrative cost= (787,600)

Profit= $316,150

TiX:

Revenues= 2,400,000

Engineering cost= (1,213,750)

Administrative cost= (1,060,400)

Profit= $125,850

5 0

3 years ago

Brazil is almost self-sufficient in ethanol. Brazilian ethanol is made from sugar and costs 83cents per gallon whereas U.S. et

djverab [1.8K]

Answer:

Brazil has comparative advantage in Ethanol.

Both US & Ethanol can gain from trade, if they specialise in their good of comparative advantage & import the other at lower opportunity cost.

Explanation:

Comparative advantage is when an economy can produce a good with lesser opportunity cost than other economy.

Brazil can produce ethanol at lower opportunity cost, as it uses lesser resources to produce Ethanol, compared to US.

So, Brazil has comparative advantage in producing ethanol. Both US & Brazil can gain from specialisation : As, US can get more ethanol at lesser than domestic opportunity cost. And, Brazil can also gain from trade by importing the good in which US has better opportunity cost & comparative advantage, in exchange of exported ethanol. It would imply Brazil would get more of the other good at lesser than domestic opportunity cost.

3 0

3 years ago

A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil

Ierofanga [76]

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

3 0

3 years ago

How does the format of a memo differ from that of an e-mail? please answer asap

aivan3 [116]

Answer: Memos omit a closing signature.

(I took the test and this was the answer)

5 0

3 years ago

Explain the debtor-creditor relationship.

Helen [10]

A debtor is someone who owes a financial obligation (a “debt”) to another, known as the creditor. An example of a debtor-creditor relationship is where a bank lends money to an individual or company, on the basis that the money has to be paid back at some point to the bank

7 0

3 years ago

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