Answer:
$ 0.61 per unit
Explanation:
The unit-of-activity method is one of the asset depreciation methods. Under this method, the depreciable cost of the asset is spread over the units produced. The formula is a more accurate measure of wear and tear.
In this case:
Depreciable cost=(purchase price -salvage value)
=$52000.00 -$3200.00
=$48,800.00
Depreciation per unit= Depricable cost / expected production
=$48,800/80000
=$ 0.61per unit
<u>Answer: </u>Option A
<u>Explanation:</u>
Prospective approach is used for bring changes into accounts. In the LCNRV rule the accounting principle of lesser value of the stock is so that the amount sold can be mentioned as the net realizable value (NRV). Here the principle of using low cost of net realizable value is known as LCNRV. This cannot be changed using prospective approach.
Other changes such as the depreciation from straight line to double declining depreciation, LIFO from average costing for inventories and other change from double declining to straight line depreciation can be done with the prospective approach.
How an empathizer can be a powerful force in an organization
No the statement is not true. It will not be efficient as i<span>n order for a market to be efficient, the allocation of resources must maximize total surplus which does not seem the case in the given statement. </span>