Answer: The matching principle
Explanation: Matching principle is a combination of accrual accounting and revenue recognition. It states that the expenses of a company must be recorded at the same accounting period in which they were incurred to earn such revenues.
In the given case, Apple is reporting the warranty expenses at the same time period in which the revenue from such expenses is recognized.
Hence we can conclude that the given case illustrates the matching principle.
Answer:
Publicity is part of a company's <u>promotion mix</u>.
Answer:
<u>(a) as either fixed or variable</u>
fixed
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
variable
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
<u>(b) as either direct or indirect</u>
direct
Lace to hold leather together
Wages of assembly workers
Leather covers for soccer balls
indirect
Coolants for machinery
Annual flat fee paid for factory security
Machinery depreciation (straight-line)
Taxes on factory
Explanation:
Fixed Costs are constant for any production level. Variable Costs vary directly with production.
Direct Costs are easily traced to the product manufactured. Indirect costs are not easily traced and they need to be allocated to Products manufactured.
Answer:
=$5,230,000
Explanation:
Annual Depreciation=Depreciable Value×Units produced during the year estimated total production
The units of the depreciation method start by calculating the depreciable amount.
Depreciable amount = Assets cost - salvage value
=$21,220,000.-$4,000,000
=$17,220,000
depreciation expense per unit= depreciable amount/production capacity
=$17,220,000/210,000 per tone
=$82 per tone
During the year, 195,000 were extracted.
The depreciation value for the year will be
= 82 x 195,000
=$15,990,000
book value will be asset cost minus depreciation expense
=$21,220,000 -$15,990,000
=$5,230,000
.
That they are doing very well
