Answer:
a.Capital expenditure, replacement component
b.Capital expenditure, replacement component
c.Revenue Expenditure, not applicable
d.Capital expenditure, replacement component
e.Capital expenditure, additional
f.Revenue Expenditure, not applicable
g.Capital expenditure, additional
Explanation:
Capital Expenditure involve the addition or replacement on assets that <u><em>increases flows of economic benefits or Income earning</em></u> capacity.
Revenue Expenditure involve repairs or maintenance of assets in order to <u><em>maintain the ability to earn income or economic benefits</em></u> and not to increase it.
Answer:
Because it denotes a high price relative to the prices of competing products, the price skimming is sometimes called a "market-plus" approach to pricing.
Explanation:
because it denotes a high price relative to the prices of competing products. this strategy works best when demand is greater than supply.
Answer:
Maximum Amount Payable = $8333.33
Explanation:
Perpetual Annuity Payment = $500
Growth Rate = 3%
Discount Rate = 9%
Maximum Amount Payable = Present Value of Perpetual Annuity
Present Value of Perpetual Annuity = Perpetual Annuity Payment / (Discount rate - Growth rate)
Maximum Amount Payable = $500 / (0.09 - 0.03)
Maximum Amount Payable = $500 / 0.06
Maximum Amount Payable = $8333.33
Answer:
The price elasticity of supply is 0.0763 or 7.63%.
Explanation:
Price Elasticity of Supply shows response of quantity supplies to the price of the product supplied. Its Formula is as follow:
Price Elasticity of Supply = % change in supply / % change in price
Price Elasticity of Supply = (0.935% / 12.25%) x 100 = 7.63%
% Change in Supply = ( 100,935 - 100,000 ) /100,000 = 0.935%
% Change in Price = ( 449 - 400 ) / 400 = 12.25%
Answer:
The factor market
Explanation:
The factor market refers to buying and selling of factors of production. Factors of production are land, labor, capital, entrepreneurship. Prices of factors of production are determined by interaction of supply and demand forces. By Dave offering his labor, he receives wages as a reward for the factor of production he provides i.e. labor.