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-BARSIC- [3]
3 years ago
9

Most of the assets were bought a long

Business
1 answer:
Margarita [4]3 years ago
4 0

Answer:

Historical cost principle

Explanation:

Assets must be recorded at cost value, not market value. When you record an asset, you cannot change its value every period, you have to keep using the historical value. This is why we use a separate account to record accumulated depreciation of assets, so that the purchase cost is always constant, but the net carrying value will vary depending on depreciation expense.

Market value changes and can be very volatile. Imagine a house, whose initial value was $300,000, then it increased to $500,000 but the market went down and its value was $350,000. It would be a mess to change the value and pay capital gains taxes, or then report a loss.

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7
Lera25 [3.4K]

When Haddock, Inc. adheres to the ethics of preventing air pollution, littering, and waste management, they are essentially adhering to business ethics and servicing <u>government</u> and <u>communities</u> stakeholders.

<h3>Who are the stakeholders of a business?</h3>

A stakeholder is a person or an entity that has some vested interests in a company because they can either affect or be affected by a business' operations and performance.

Typically, an entity's stakeholders include the following groups:

  • Investors
  • Employees
  • Customers
  • Suppliers
  • Communities
  • Governments
  • Media
  • Trade associations.

Thus, when Haddock, Inc. adheres to the ethics of preventing air pollution, littering, and waste management, they are essentially adhering to business ethics and servicing <u>government</u> and <u>communities</u> stakeholders.

Learn more about stakeholders at brainly.com/question/24432365

4 0
2 years ago
Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumpti
Semmy [17]

<u>Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to the midpoint method, the government policy should have reduced beer consumption by</u> (c) 60%.

Explanation:

T<u>he Price elasticity of demand (PED or Ed) </u>is defined as a measure  used in economics to show the relation or elasticity  of the quantity demanded of a good or service to increase in its price when only  the price changes.

<u>The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.</u>

<u></u>

<u>Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumption changed the price of a case of beer from $10 to $20. According to the midpoint method, the government policy should have reduced beer consumption by</u> (c) 60%.

6 0
3 years ago
Maverick law office currently orders ink refills 120 units at a time. The firm estimates that carrying cost is 40% of the $10 un
dmitriy555 [2]

Answer:

Economic order quantity (EOQ)= 49 units

Explanation:

Giving the following information:

Demand= 480 units per year

Order cost= $10

Holding cost= 10*0.4= $4

<u>Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.</u>

Economic order quantity (EOQ)= √[(2*D*S)/H]

D= Demand in units

S= Order cost

H= Holding cost

Economic order quantity (EOQ)= √[(2*480*10) / 4]

Economic order quantity (EOQ)= √(2,400)

Economic order quantity (EOQ)= 49 units

8 0
3 years ago
In 2019, Grant's personal residence was completely destroyed by fire. He was insured for 100% of his actual loss, and he receive
tia_tia [17]

Answer:

D) $0

Explanation:

The insurance company paid $250,000 to Grant to cover the loss of his house and that amount was 100% of the fair market value of the house. To calculate any casualty gain or casualty loss the money received form the insurance company should have been either larger or smaller than the fair market value of the house.

7 0
3 years ago
Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a d
chubhunter [2.5K]

a. Salary of chief compliance officer of company

b. Power used by painting equipment

c. Instrument panel installed in the airplane cockpit

d. Annual bonus paid to the chief operating officer of the company

e. Turbo-charged airplane engine

f. Interior trim material used throughout the airplane cabin

g. Cost of normal scrap from production of airplane body

h. Hourly wages of employees that assemble the airplane

i. Salary of the marketing department personnel

j. Cost of paving the headquarters employee parking lot

k. Cost of electrical wiring throughout the airplane

l. Cost of electronic guidance system installed in the airplane cockpit

m. Salary of plant manager

n. Cost of miniature replicas of the airplane used to promote and market the airplane

o. Human resources department costs for the year

p. Metal used for producing the airplane body

q. Annual fee to a celebrity to promote the aircraft

r. Hydraulic pumps used in the airplane's flight control system Product costs-  

s. Yearly cost of the maintenance contract for robotic equipment

t. Prebuilt leather seats installed in the first-class cabin

u. Depreciation on factory equipment

v. Special advertising campaign in Aviation World magazine

w. Oil to lubricate factory equipment

x. Masks for use by painters in painting the airplane body

y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product

z. Salary of chief financial officer

Answer:

A) period costs- administrative expense

B) product cost-factory overhead cost

C) product cost-direct materials cost

D) period costs- administrative expense

E) Product costs-direct materials cost

F) Product costs-direct materials cost

G) Product costs-factory overhead cost

H) Product costs-direct labor cost

I) Period costs-selling expense

J) Period costs-administrative expense

K) Product costs-direct materials cost

L) Product costs-direct materials cost

M) Product costs-factory overhead cost

N) Period costs-selling expense

O) Period costs-administrative expense

P) Product costs-direct materials cost

Q) Period costs-selling expense

R) Product costs-direct materials cost

S) Product costs-factory overhead cost

T) Product costs-direct materials cost

U) Product costs-factory overhead cost

V) Period costs-selling expense

W) Product costs-factory overhead cost

X) Product costs-factory overhead cost

Y) Product costs-factory overhead cost

Z) Period costs-administrative expense

6 0
4 years ago
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