You use money everyday and my answer would be a false
Answer:
Option (c) is correct.
Explanation:
Variable cost as a percent of sales:
= (Variable expenses ÷ Sales) × 100
= ($3,000,000 ÷ $5,000,000) × 100
= 60%
If Sales = X
then Variable cost is 0.6X (i.e. 60% of Sales)
Sales - Variable cost - fixed expenses = net operating income
X - 0.6X - 1,500,000 = 300,000
0.4X = 300000 + 1500000 = 1800000
X = 1800000 ÷ 0.4
= 4,500,000
Answer: True
Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.
Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value is retained in the form of a fixed or intangible asset.
The capitalized cost of any investment can be determined using the equation, P = A/i. Where P is the capitalized cost, A is the annual amount and i is the interest rate.
Don’t trust my word I just need to answer questions i’m so sorry
Good for the company cause the more loyal a customer is the more they will want to spread your sells advertisemants and recommend you to other company.
