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3 years ago

7

(True) or (False)? The most common method companies use is double-declining balance, because it allows companies to recognize fo

r depreciation expense up front.

1 answer:

Marrrta [24]3 years ago

5 0

Answer:

false

Explanation:

my teacher said it was false but she could be wrong

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Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper

IrinaK [193]

Answer: please refer to the explanation section

Explanation:

Design A

Initial cost $2500 000

operating and maintenance cost = $800 000

Overhauls = $1250000 in 5 years

R = 5%

PV= overhaul cost/(1+r)^n + maintenance cost(1 -(1+r)^-5)/r

PV = 1250000/(1 + 0.05)^5 + 800000(1 - (1 + 0.05)^-5)/0.05

PV = 979407.71 + 3463581.34 = 4442989.05

costs to be capitalized = present value of overhaul costs = 979407. 71

Design A will be valued at = 2500000 + 979407. 71 = 347907.71

Total cost of Choosing Design A = 979407.71 + 3463581.34 + 2500000

Total cost of Choosing Design A = 6942989.05

Design B

initial cost = $5750000

Operating and Maintenance = $600000

Overhauls = $3000000 in 10 years

PV= overhaul cost/(1+r)^n + maintenance cost(1 -(1+r)^-5)/r

PV = 3000000/(1 + 0.05)^10 + 600000(1 - (1 + 0.05)^-10)/0.05

PV = 1841739.76 + 4633040.96 = 6474780.72

Cost to be capitalized = overhaul cost = 1841739.76

Design B will be value at = 1841739.76 + 5750000 = 7591739.76

Total cost of costs Design B = 1841739.76 + 5750000 + 4633040.96

Total cost of costs Design B = 12224780.72

Design B involves more costs than Design A. Present value for total cost for choosing Design B is Higher than the present value for Total costs of choosing Design A

Choose Design A

3 0

3 years ago

Banner Systems is a start-up company that makes connectors for high-speed Internet connections. Banner has budgeted three hour

NARA [144]

Answer:

572 Favorable

Explanation:

Direct Labour efficiency Variance:

= (Standard Labour Hour - Actual Labour Hour) × Standard Rate

= [(78 connectors × 3 hours of direct labor per connector) - (190 hours)] × $13 per hour

= [234 hours of direct labor - 190 hours] × $13 per hour

= 44 hours × $13 per hour

= $572 Favorable

Therefore, Banner's direct labor efficiency variance for August is $572 Favorable.

3 0

3 years ago

Maywood, Inc. signs a $17,000, 8.5%, six-month note dated November 1, 2017. The interest expense recorded for this note in 20

exis [7]

Answer:

$241

Explanation:

Of the six month tenor of the note, the period that falls into 2017 is 2 months (that is, November 1 to December 31). In addition, by default, interest rates are stated on an annual basis except indicated otherwise. Therefore, it is assumed that 8.5% rate indicated in the question is an annual rate.

The computation of the interest that falls into 2017 is as follows:

= $Note Amount*interest rate*\frac{number of months in 2017}{12 months in a year}$

= $17,000 * 8.5% * 2/12

= $240.83

= approx. $241.

5 0

3 years ago

Storing foods correctly will also reduce the potential for _______.

Vaselesa [24]

Harmful bacterias or possibly mold

6 0

3 years ago

Read 2 more answers

John, the CEO of Tresnel Inc., learns that the government of one of his company's foreign markets has enacted a new law that lim

Natasha_Volkova [10]

Answer:

The correct answer is letter "D": political and legal.

Explanation:

Managers should not be discouraged in front of <em>new legislation</em>. In fact, new laws setting boundaries on businesses can be detrimental for those companies but immediately after the regulations are enacted, firms should find out if the political environment of that law has grey areas that help companies to surpass them.

Besides, the social environment where the firm operates can offer companies other opportunities for the fir to grow. Research must be meticulously conducted under this scenario to find out new profit sectors in the market before making radical decisions such as stopping the operations of the entity.

5 0

3 years ago