Answer:
He is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value.
Explanation:
<u>Solution and Explanation:</u>
<u>The following steps should be undertaken:
</u>
1. She should create extensive records of receipts, expenses, and other business dealings to demonstrate her profit intent which will give strength to fact that her activity is a business endeavor rather than hobby.
2. Secondly, she should keep ready a written and well-documented business plan clearly outlining the steps she would be taking to cut down losses and start earning profit.
3. She should demonstrate that she depends on her business endeavor for her livelihood to repel notion of it being a hobby.
Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.
<h3>What are joint costs?</h3>
Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.
One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.
Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.
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FALSE. Directive leadership is thought to be less effective when employees have low levels of ability.
If employees have low levels of ability this is when they need directive leadership.
