Answer:
Gain= $400,600
Explanation:
<u>First, we need to calculate the book value of the building:</u>
Book value= purchase price - accumulated depreciation
Book value= 599,900 - 200,300
Book value= $399,600
<u>If the selling price is higher than the book value, the company gain from the sale.</u>
Gain/loss= selling price - book value
Gain/loss= 800,200 - 399,600
Gain= $400,600
Answer:
Decision-making skills
Explanation:
Decision making involves an objective comparison between alternatives to make a choice that improves an organization. The decision making skill is a trait that portrays proficiency in relating concepts to organizational goals.
Decision-making skills allow managers to make quick and accurate decisions. A marketing manager will correctly identify strategies to make a marketing campaign successful if they have good decision-making skills.
Answer:
Overhead at the end of the year was $3,570 under-applied
Explanation:
For computing the ended overhead amount, first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
= $521,220 ÷ 21,900 hours
= $23.8
Now we have to find the actual overhead which equals to
= Actual direct labor-hours × predetermined overhead rate
= 21,750 hours × $23.8
= $517,650
So, the ending overhead equals to
= Actual manufacturing overhead - actual overhead
= $521,220 - $517,650
= $3,570 under-applied
Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
