Answer:
The amount of amortization expense each year is $500,000.
Explanation:
This can be calculated as follows:
Patent original cost = $3,000,000
Salvage value after 5 years = $500,000
Number of years to use before selling it = 5 years
Therefore, we have:
Annual amortization expense = (Patent original cost - Salvage value after 5 years) / Number of years to use before selling it = ($3,000,000 - $500,000) / 5 = $500,000
Therefore, the amount of amortization expense each year is $500,000.
Answer:
Explanation:
a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.
This would: make output to remain unchanged, real interest to increase and current price level to increase as well.
b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.
C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.
d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.
Answer:
C. The monoplist sets price equal to marginal cost to maximize profit.
Explanation:
To maximise the profit, monopolist charge price where MR = MC.
Rules are made so that people behave in a particular manner whereas, procedures are meant to guide about how to do something.
Procedures are the standard steps used to carry out tasks in an organization. They were created for repetitive tasks. They offer instructions regarding how to carry out a task. In speaking, procedures are inflexible and provide no room for inventiveness. It eliminates ambiguity from the work and provides it a clear structure.
Rules are specific instructions that define what must be done and what shouldn't be done. They were created in order to preserve, govern, and manage the workplace. They were inflexible and lack adaptability. Strict disciplinary measures are applied when rules are broken. It reflects decisions about what needs to be done and what cannot be done.
No, rules cannot be eliminated when solid procedures are in place because they determine the behavior or manner in which things should be done.
Learn more about rules and procedures here:
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Answer:
Explanation:
Budgeted direct cost rate= budgeted direct cost/professional labor hours available =97500/1500=$65 per labor hour
Budgeted indirect cost rate= Budgeted indirect cost/ professional labor hours = 2475000/45000= $55
Job R:
Direct cost:
Job R - 120H*65=7800
Add: Indirect cost:
120H* 55=6600
TOTAL R JOB=14400
Job P:
DC:
Job P - 160H*65=10400
IC:
160H*55=8800
TOTAL P JOB=19200
