Depreciation Expense $ 4
<h3>What is
Depreciation?</h3>
Depreciation in accounting refers to two aspects of the same concept: First, the actual decrease in the fair value of an asset, such as the annual decrease in the value of factory equipment.
The claim for depreciation on assets used by the assessee for the purpose of business or profession during the previous year. If an asset has been in use for more than 180 days, depreciation of 50% is allowable in that year.
Depreciation in Action - If a company purchases a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset at a rate of Rs. 20,000 per year for a period of 5 years.
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Answer:
$32,000
Explanation:
Cost of goods sold refers to all direct expenses incurred in producing goods and excludes all selling and indirect costs.
Cost of goods sold = Sales value - Gross Profit
Gross profit = Sales value - Direct costs - overhead costs
Gross profit per unit = $120 - ($50 + $ 20 + $10)
Gross profit per unit = $40 per unit
Gross profit in value = $40 per unit × No of units = $40 × 400 units = $16,000
Budgeted sales value = Selling price per unit × Budgeted sales units
= $120 × 400 chairs = $48000
Thus, budgeted cost of goods sold = Budgeted sales value - Gross Profit in value
= $48000 - $16000 = $32000
<u>Note</u>: While computing gross profit, selling and administrative expenses would be excluded since those are used while computing net income. Also, cost of goods sold excludes selling and administrative i.e . indirect costs.
Answer:
The correct answer is letter "B": are essential to the reallocation of resources from less desired to more desired goods.
Explanation:
Economic profit is the difference between the company's profits from revenue and the overall opportunity cost. The difference between accounting profit and economic profit is significant. Only total revenue minus the explicit cost of producing goods or services is considered to calculate the accounting profit.
The economic profit is called a loss if after subtracting the opportunity costs from revenue the figure is negative. <em>Both profit or losses determine how resources will be allocated in a company prioritizing the more desired goods or those who are needed for the firm's operations.</em>
Answer:
A: "Past information can get in the way of learning new things."
A buildup approach is used by Howard to find out how much fiberglass insulation to use in building homes
<h3>What is a
buildup approach?</h3>
This refers to the method of calculating an market's revenue potential by recognizing the number of probable purchasers in the market and ther purchaser's requirements as well.
Hence, this same approach is used by Howard to find out how much fiberglass insulation to use in building homes.
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