Land improvements are capitalized separately from Land because land improvements have only a limited useful life.
Land is a special fixed asset which means that:
- It is purchased for long term use
- It is not depreciated because it lasts forever
Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.
In conclusion, land improvements are capitalized separately from land because they have a limited useful life.
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Answer:
<em>The theoretical minimum number of workstations are five workstations</em>
Explanation:
Given the total time available per day = 480 minutes
the cycle time which is the time required or spent to produce a unit can be obtained as;
Cycle time = Total time / Demand per day
Cycle time = 480 / 80 = 6 minutes
hence 6 minutes is the cycle time for one unit.
The theoretical number of stations can be calculated thus;
Theoretical number of stations = Time for one unit / Cycle time
= 30/6 = 5 workstations
<em>Therefore the theoretical minimum number of workstations are five workstations</em>
Answer:
A cottage industry is a small-scale, decentralized manufacturing business often operated out of a home rather than a purpose-built facility. Cottage industries are defined by the amount of investment required to start, as well as the number of people employed.
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Hello. You did not present a diagram to which the question refers. However, I will try to help you in the best possible way.
The income effect is the term related to the increase or decrease in the consumer's purchasing power in relation to the fluctuation in the price of consumer products and the value of the national currency. On the other hand, the substitution effect refers to the impact between the variation of the consumers' income value and the product's prices.
