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3 years ago

Mention three reasons for depreciation

1 answer:

5 0

<h2><em>Answer:</em></h2><h2><em>The causes of depreciation are: </em></h2><h2><em>Wear and tear:Any asset will gradually break down over a certain usage period, as parts wear out and need to be replaced. ... </em></h2><h2><em>Perishability: Some assets have an extremely short life span. ... </em></h2><h2><em>Usage rights</em></h2><h2><em>Natural resource usage </em></h2><h2><em>Inefficiency/obsolescence</em></h2><h2><em>ECT</em></h2>

Explanation:

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Define the law of demand in a perfectly competitive market

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Is a microeconomics law that states, all other factors being equal, as the price of a good or service increases, consumers demand for the good or service will decrease, and vice versa

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3 years ago

Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue Division line. Revenue from Bar

zloy xaker [14]

Answer: Decrease by $70000

Explanation:

Before the Barbecue Division is eliminated, the profit gotten will be:

Revenue from Barbecue Division sales = $510,000

Less: Salaries = $110000

Less: Direct material = $315000

Profit = $70000

Therefore, based on the analysis above, If Barbecue Division were eliminated, profitability would decrease by $70000

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3 years ago

Norton, Inc. has the following information available for September 2020.

bulgar [2K]

Answer: See explanation

Explanation:

a. Prepare a CVP income statement that shows both total and per unit amounts.

CVP INCOME STATEMENT

Per unit. Total

Sales (500 units). 400. 200,000

Variable expense 280 140,000

Contribution margin. 120 60,000

Fixed expense. 48,000

Net operating Income. 12,000

b. Compute Norton's breakeven in units.

Breakeven point = 48000 / 120 = 400

c. Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

CVP income statement for the break-even point

Per unit. Total

Sales (400 units). 400. 160,000

Variable expense 280 112,000

Contribution margin. 120 48000

Fixed expense. 48,000

Net operating Income. 0

3 0

3 years ago

Pharoah Incorporated factored $154,700 of accounts receivable with Engram Factors Inc. on a with recourse basis. Engram assesses

VashaNatasha [74]

Answer:

Cash 135,604 debit

Due from factor account: 7,735 debit

Loss on Factoring 18,081 debit

Recourse Liability 6,720 credit

Accounts Receivable 154,700 credit

--to record sales of account receivables--

Explanation:

fee: 154,700 x 3% = 4,641

retention: 154,700 x 5% = 7,735

recourse: 6,720

The company will receive cash for the difference between his account receivable and the discount above:

154,700 - 4,641 - 7,735 - 6,720 = 135.604‬

We post the retention as an assets as latter we will recove this amount.

Then, the recourse as a liaiblity. Write-off the receivables and later, the cash receipts.

The difference will be considered a loss.

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3 years ago

The UK economic climate is important for POD Point. It is considering two options to reduce the impact of falling UK consumer in

vivado [14]

The answer should be 1. Focus on selling to foreign countries.

This is because the article stated that the POD business had a lot more awareness on foreign sales production. They had tons of customers with 20% of their profit coming from Norway, and the rate keeps rising by year 3.

Foreign selling creates product awarness with more people being able to buy the product if overseas, making more profit from more people buying. If it were just sold in the U.S, for example, then not as many people could buy the cars, but foreign production can reach out to MANY more people.

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3 years ago

Mention three reasons for depreciation​

Mention three reasons for depreciation