<span>Fair value is defined as, a rational and unbiased estimate of the potential market price of a good, service, or asset. It takes into account such objective factors as: acquisition/production/distribution costs, replacement costs, or costs of close substitutes.
Since this is an opinion question, either answering yes or no is correct, but you have to say why.
If I understand the question correctly, and the question isn't missing any parts, I would assume it's asking if you should put value on contracts as a document and other financial instruments.
I was going to say no, but because contracts can be transferred or used as currency, I would say yes.
If you say yes I would argue that giving a fair value of the contracts would make them more legal and have more bearing in a place of business. That it would prevent the fluctuation of value on that contract based on other factors like profit/loss and whether or not you transferred, changed, etc. the contract. I would argue that to protect that contract and other financial instruments, and the holders stake in it, you should create a fair value for it.
If you say no, I would argue that the contract can already be treated as a form of currency, and because of that it should not have a fair value placed on it. I would also argue that because contracts often times state the value of that contract within itself, that it should not have a fair value. And finally, I would argue that because with time, the value of items change, you should not place a fair value on a document that can be changed and can lose or gain value with time based on the purposed information in the contract.
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Answer:
$2,000
Explanation:
The computation of the total amount of maintenance cost is shown below:-
Total amount of maintenance cost allocated to the Carpentry Department = (Maintenance fees ÷ Total square feet) × Carpentry Department square feet
= ($12,000 ÷ 36,000) × 6,000
= 0.333 × 6,000
= $2,000
Therefore for computing the total amount of maintenance cost we simply applied the above formula.
Answer:
<em>C. rotate outward around the point where only capital is employed in production.</em>
Explanation:
Explanation:
The preparation of the selling and administrative expenses budget for the month of July is presented below:
Selling and administrative expenses Budget
For the month of July
Budgeted Sales unit 2,900 units (A)
Variable selling and administrative expenses per unit $3.90 (B)
Budgeted variable expenses $11,310 (C) = A × B
Budgeted fixed selling and administrative expense $30,340
Total budgeted selling and administrative expenses $41,650
Less: depreciation - $3,610
Cash disbursement for selling and administrative expenses $38,040
The money gained from taking a business venture risk is called ROI.
