Increases outputs by smaller and smaller amounts.
Diminishing returns means that at a certain point with all other factors equal, increasing the inputs will yield more and more decreased outputs.
The work process involved in providing the service involves the physical presence of the customer in the system is false.
Explanation:
- The Customer contact refers to the physical presence of the customer in the system.
- creation of the service refers to the work process involved in providing the services.
- There is minimum waste of time and resources in delivering the service.
- service process can be enhanced by the customer who takes a greater role in the production of the service.
It would be overdraw because you’re gonna take money out of your bank account etc.
Answer:
No impairment loss would be reported
Explanation:
The computation is shown below;
Impairment loss = carrying value - recoverable amount
Where,
The recoverable amount would be the higher amount of fair market value and value in use
So the recoverable amount would be $2,545,000
Now the impairment loss is
= $2,500,000 - $2,545,000
= -$45,000
Since the impairment loss comes in negative so no impairment would be recorded
