Answer:
Please see explanation
Explanation:
The following steps are used to estimate cost in high-low method:
Step 1: Take the activity level and cost for
the highest activity level
the lowest activity level
Step 2: The variable cost per unit can be calculated as:
Variable cost per unit=Difference in total cost at two levels/difference in number of units at two levels.
Step 3: Having calculated the variable cost per unit of activity, fixed cost can be calculated by substitution into one of the cost expressions.The difference between the total costs at this activity level and the total variable costs at this activity level is the fixed cost.
Limitations:
High- Low analysis uses just two sets of data i.e. highest value and lowest value for cost estimation. Due to this reason, this analysis can not be used for rough estimation.Since the other methods of cost estimation such as regression analysis calculates a line of best fit for all the available data, it is likely to provide a more reliable estimate than the high low analysis.
Explanation:
Section 3. Please refer back to the text, as well as our last assignment
on the demand shifters, if you are stuck or confused.
Instructions:
Come up with an example for each of the demand shifters:
1. Changes in income
2. Changes in the number of consumers
3. Changes in consumer tastes and preferences
4. Changes in consumer expectations
5. Changes in the price of substitute goods
6. Changes in the price of complementary goods
For each example:
• Choose a good or a service
• Write a headline or tell me a story (like our last assignment
This type of speaker has Integrity. This is so because Integrity implies honesty and this is related to a person who has strong moral principles and that person will also be whole and undivided. This is the main characteristic of an incorruptible speaker who indeed looks for the benefit of others without goign against his principles.
Answer:
The straight-line depreciation method and the double-declining-balance depreciation method:
Produce the same total depreciation over an asset's useful life.
Explanation:
The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP). The other two methods are sum of the years' digit and units of production. The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount. For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate. Depreciation expense is then calculated on the declining balance until the salvage value is left. This is why they produce the same depreciation over the asset's useful life.
Answer:
Yes, if the business is slow, then you can cut short the budget for the office supplies as well as repairs for the next quarters, However, you need to do this intelligently. Like you can abandon commercial office, and work from home if your business permits it. Thus repairs will be reduced in cost, and also the office supplies.
Explanation:
Yes, if the business is slow, then you can cut short the budget for the office supplies as well as repairs for the next quarters, However, you need to do this intelligently. Like you can abandon commercial office, and work from home if your business permits it. Thus repairs will be reduced in cost, and also the office supplies like food which can be prepared on self in home, stationery can be bought for less, electricity cost is reduced as you need to pay now for only one place as your office and home both are same now, and you also save the transportation cost as well.
Also, you can barter business goods and services. Like if you have rented your office, you can provide your services free of cost to the landlord during a bad time in exchange for monthly rent. You can also cut the insurance cost, and also make most out of your time through proper planning. All this is possible. And hence you can reduce the budget for the next quarter for office supplies and repairs certainly.
