Answer:
A. $ 450 comma 000
Explanation:
In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.
Variable cost per hour = (High total cost - low total cost) ÷ (High production volume - low production volume)
= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )
= $160,000 ÷ 8,000 units
= $20
Now the fixed cost equal to
= High total cost - (High production volume × Variable cost per unit)
= $710,000 - (13,000 units × $20)
= $710,000 - $260,000
= $450,000
We simply applied the above formula
Answer:
True
Explanation:
The great advances in the mass media and technology have marked consumer habits in our society. One of the most influential today is television, because it can change the way people act or think and, in this way, create a different reality through advertising, most experience the impact of advertising by the large number of hours spent surfing the net.
Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
Answer:
d.provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.
Explanation:
The purpose of internal controls is to provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.
By definition: An internal control is a procedure or policy put in place by management <u>to safeguard assets, promote accountability, increase efficiency, and stop fraudulent behavior.</u>
Summarily, internal controls are put in place as a process to prevent employees from stealing assets or committing fraud.
Answer:
c. The present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity due
Explanation:
Considering the following statements:
- the ordinary perpetuity, the payments must occur on the first day of each monthly period. Hence this statement is incorrect.
- The ordinary annuity would be more valuable than the annuity due if both had a life of 10 years. Incorrect.
- In case of perpetuity the times is not limited, hence would get the higher return.
