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3 years ago

Depreciation: Multiple Choice

Business

1 answer:

Whitepunk [10]3 years ago

8 0

Answer:

4. Estimates the decrease in the value of capital goods due to wear and tear over the year.

Explanation:

In accounting terms and in the business world, depreciation is defined as the systematic loss or reduction in value of a fixed asset or capital goods over time due to wear and tear. It is used in estimating the useful life or life expectancy of the asset. Examples of those fixed assets include, buildings, furniture, tractors, etc.

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When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a simila

Aneli [31]

Answer: Pure play

Explanation:

A pure play method in finance is an approach that is used to estimate and determine the cost of equity capital of a private company which involves looking at the beta coefficient of other single focused and public companies.

Pure-play companies are the companies that are involved in a single line of business.

5 0

4 years ago

Select all that apply The weighted average unit contribution margin ______. Multiple select question. is calculated by adding up

8090 [49]

Answer:

hey bro how old are u

Explanation:

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3 years ago

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,0

laila [671]

Answer:

a. $534,000

b. $271,550

Explanation:

a. Compute operating income at 121,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($10.00 - $5.00)*121,000 - $71,000

Operating Income = ($5.00)*121,000 - $71,000

Operating Income =$605,000-$71,000

Operating Income = $534,000

Therefore operating income at 121,000 units is $534,000

b. Compute operating income at 221,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($6.80 - $5.25)*221,000 - $71,000

Operating Income = $1.55*221,000-$71,000

Operating Income = $342,550-$71,000

Operating Income = $271,550

Therefore operating income at 121,000 units at 221,000 units is $271,550

5 0

3 years ago

Ben & Jerry's mission to make the world a better place is linked to various organizational and marketing strategies, one of

iogann1982 [59]

Answer:

Caring dairy

Explanation:

Caring dairy strategy is based on the following principle.

They check if a cooperative guarantees the following:

1. Supplies are hormone free

2. Bovine growth is hormone free

If they have a cooperative's guarantee then they buy milk and cream from that cooperative

In this way they are safe and can claim that their products are also hormone free

8 0

4 years ago

Pharoah Company on July 15 sells merchandise on account to Sarasota Co. for $3100, terms 2/10, n/30. On July 20 Sarasota Co. ret

pickupchik [31]

Answer:

July 24 Cash $1470 Dr

Discount allowed $30 Dr

Account Receivable $1500 Cr

Explanation:

The receipt of payment for accounts due will cause a credit to accounts receivable for that particular debtor along with a debit to cash as payment is received. However, as there were some sales returns, the outstanding amount in the accounts receivble account was sales less sales returns that is 3100 - 1600 = 1500.

The terms state 2/10, n/30 which means 2% cash discount is allowed if payment is made within 10 days of sale. The payment is made within 10 days, as July 24 falls under this period so cash received will be 1500 * 98% = 1470.

While Accounts recevables will be reduced by 1500. The difference of 30 is discount allowed and it is an expense and will be debitted.

4 0

3 years ago