1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MariettaO [177]
3 years ago
9

The use of accelerated depreciation:____.a. discourages investment in plant and equipment. b. increases expenses and decreases c

ash flow.c. initially decreases the firm's taxes. d. initially increases the firm's profits.
Business
1 answer:
Elena-2011 [213]3 years ago
8 0

Answer:

c. initially decreases the firm's taxes

Explanation:

Accelerated depreciation provides for a higher rate of capital allowance on the assets that is New and Unused and brought in the business for use in manufacturing for the first time. This allowance then lowers for the other years. The purpose of this is to encourage  investment in plant and equipment as it initially decreases the firm's taxes.

You might be interested in
Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. O
qwelly [4]

Answer:

Total inventory procuring cost $ 12.000

Explanation:

Step 1. Given information.  and Step 2. Formulas needed to solve the exercise.

To find out invencoty cost, we need to calculate EQO

EOQ = sqrt of (2 * ordering cost per order * total quantity required / carrying cost per order)

Total inventory procuring cost = Carrying cost per unit per year (EOQ/2) + Fixed order cost * no of times ordered

Step 3. Calculation. and Step 4. Solution.

EOQ = sqrt of (2 * 500 * 8.000 / 18) = 667 units.  

Therefore no of times to be ordered = 8.000/667 = 11.99 = 12 times  

Total inventory procuring cost = 18 (667/2) + 500 (8.000/667) = $ 12.000

Note

Total Inventory procuring Cost is the sum of the carrying cost and the ordering cost of inventory.

8 0
3 years ago
Read 2 more answers
The yurdone corporation wants to set up a private cemetery business. according to the cfo, barry m. deep, business is "looking u
Advocard [28]

Answer:

Net Present Value for this project is -411,111.11

Explanation:

Net Present Value is the difference between present values of future cash flows and present value of future cash outflows. Since, the outflows are paid today, we don't need to discount them.

Since we have indefinite period of time and expected net cash inflow of 107,000$ after first year, where it is expected to grow annually at 3%, we can use following formula:

P V = F V / i-g, where g is annual growth rate of future cash inflow. Therefore, we will have P V = 1,188,888. In order to calculate N P V we need to calculate the difference between P V and initial investments. Finally, we get -411,111.11

6 0
3 years ago
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.05 feet of leather and
Katarina [22]

Answer:

1. $3.20 x 2.20 = $7.04

2. It will be favorable.

3. It will be unfavorable.

4. Direct material price variance = $22

   Direct material quantity variance = 0.48

Explanation:

1. Standard direct cost per unit=cost of direct materials price x direct material standard quantity per unit.

2. It will be favorable because they expected or had budgeted to pay $3.60 per foot for the material but the actual cost became $3.20. So they  pay $0.40 less than they had expected to pay.

3. It will be unfavorable because they had planed or budgeted for each unit to use 2.05 feet of leather but they ended up needing 2.20 feet of leather per collar so that means they under budgeted by 0.15 feet.

4. Direct material price variance =( $3.60 x 55) less ($3.20x55)=$22

The total amount that was budgeted or expected to be paid is subtracted from the total actual  price that was paid.

Direct material quantity variance = (2.05x$3.20) less (2.20x$3.20)= -0.48

The total direct material quantity that is used is subtracted from the quantity that was expected to be used.

5 0
3 years ago
John is a drummer who purchases his drumsticks online. When practicing with the newest pair, he notices they feel heavier than u
Vinil7 [7]

Answer:

0.0042 is the probability of the stick's weight being 2.33 oz or greater.  

Explanation:

We are given the following information in the question:

Mean, μ = 1.75 oz

Standard Deviation, σ = 0.22 oz

We are given that the distribution of drumsticks is a bell shaped distribution that is a normal distribution.

Formula:

z_{score} = \displaystyle\frac{x-\mu}{\sigma}

P(stick's weight being 2.33 oz or greater)

P(x > 2.33)

P( x > 2.33) = P( z > \displaystyle\frac{2.33 - 1.75}{0.22}) = P(z > 2.6363)

= 1 - P(z \leq 2.6363)

Calculation the value from standard normal z table, we have,  

P(x > 2.33) = 1 - 0.9958 =0.0042= 0.42\%

0.0042 is the probability of the stick's weight being 2.33 oz or greater.

6 0
3 years ago
Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $1
Vilka [71]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct Labor Variances Dvorak Company produces a product that requires 3 standard hours per unit at a standard hourly rate of $17 per hour. If 1,000 units required 2,800 hours at an hourly rate of $16.50 per hour.

A)

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance=(17 - 16.5)*2,800= 1,400 favorable

B) Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (3,000 - 2,800)*17= 3,400 favorable

C) Total direct labor variance= -1400 - 3400= -4,800 favorable

7 0
3 years ago
Other questions:
  • Hillsdale is considering two options for comparable computer software. Option A will cost $25,000 plus annual license renewals o
    13·1 answer
  • JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year. Last year, JKL insur
    8·1 answer
  • emphasize designing and managing organizations on an impersonal, rational basis through such elements as clearly defined authori
    9·1 answer
  • Explain the reporting requirements for internal service funds and enterprise funds. internal service funds and enterprise funds
    13·1 answer
  • 2. Which of the following statements about money are correct?
    10·2 answers
  • Jose has accepted a sales position at Business Solutions Corporation. Prior to this job, Jose worked in the electronics departme
    15·1 answer
  • Explain why full employment may be inconsistent with no shirking. Shirking may be likely with full employment because A. it may
    7·1 answer
  • Financial aspects of employment
    15·1 answer
  • Cullumber Company reported the following information for 2020: Sales revenue $2410000 Cost of goods sold 1751000 Operating expen
    13·1 answer
  • The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay p
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!