Answer:
Differential cost
Explanation:
Differential cost is defined as variance in cost that will be incurred between two courses of action. This is used to evaluate the best option of two investments under consideration.
The option that has more revenue will have less cost. So differential cost calculation is used to determine line of action that will bring least cost.
For example if one alternative action will entail use of a warehouse of $30,000, and the alternative is to use just in time inventory practice thereby requiring $10,000 in storage cost.
The best option is the just in time option
Answer:
C. freely operating economy in which all markets are perfectly competitive.
Explanation:
When we have a lot of producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a freely operating economy in which all markets are perfectly competitive.
- In such a free economy, demand for goods and services are not controlled.
- The consumers behavior towards purchasing will determine if producers should allocate more resources to a production process or not.
- It is better to make such market competitive without interfering into how resources are managed and dispensed.
Answer:
Total cost recovery deduction = 1251450
Explanation:
Given the seven-year class asset bought by the Sid = $1500000
On 2nd December the five-year class asset bought = $900000
Now we have to find the cost recovery deduction for 2020.
900000/(900000 + 1500000) = 37.5% Thus, use half-year convention and avoid mid quarter
1500000 – 1,000,000 (Sec 179 limit) = 500000
500000 x 14.29% = 71450
900,000 x 20% = 180,000
1,000,000 + 71450 + 180,000
Cost recovery for 7 year asset = 1,071450
Cost recovery 5 year asset = 180000
Total cost recovery deduction = 1251450
That statment is true
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