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strojnjashka [21]
3 years ago
10

Cost-volume-profit analysis requires management to classify all costs as either fixed or variable with respect to production or

sales volume within the relevant range of operations. true or false
Business
1 answer:
Anuta_ua [19.1K]3 years ago
3 0

Answer: True

Explanation:

Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.

It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.

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An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C
Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the  Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate =  $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0
3 years ago
In 2-5 paragraphs, describe how you plan to use at least one technology you learned about in the course in order to work more ef
Wewaii [24]

I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity.

<h3>What is the role of technology?</h3>

The use of technology is one that has helped a lot of business professionals to be more and more efficient in their work output.

Therefore, I will use one the technology to boast my work output so that i can be more efficient in my business dealings and boast productivity as it also helps to  keep employee information safe.

Learn more about technology from

brainly.com/question/11265745

#SPJ1

5 0
2 years ago
On September 1, 2015, Select Company borrowed $600,000 from a bank and signed a 12%, six-month note payable, with interest on th
notsponge [240]

Answer:

B. $624,000

Explanation:

Calculation to determine The total amount of the current liability (including interest payable) for this loan that appears in Select Company's balance sheet at December 31, 2015

Current liability=$600,000 + ($600,000 *12% *4/12)

Current liability=$600,000 + $24,000

Current liability = $624,000

(September 1 2015 to December 31 2015=4 months)

Therefore The total amount of the current liability (including interest payable) for this loan that appears in Select Company's balance sheet at December 31, 2015 is $624,000

7 0
3 years ago
Alin Co. purchases a building for $300,000 and pays an additional $30,000 for closing costs (brokerage, title, attorney fees). A
Yuri [45]

Answer:

The answer is: $350,000

Explanation:

When Alin Co. establishes the total cost of the building it just purchased, it must include all of the following:

  • building's purchase value $300,000
  • associated closing costs $30,000
  • building improvements and renovations $20,000

So the total cost of the building is $300,000 + $30,000 + $20,000 = $350,000

3 0
3 years ago
On November 1, Eli Co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. Eli's journal entry
Anna007 [38]

Answer:

                                 Dr.          Cr.

Note Receivable   $6,000

Account Receivable            $6,000

Explanation:

Note is received against a payment of sale mad on credit. A new receivable will be built with the name of Note receivable, so this account will be debited.   To deduct the value from the account receivable we will credit the account receivable account due to its debit nature. Later on the interest will be accrued and added in this balance.

4 0
3 years ago
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