Answer:
Saddle Inc.
a) The overhead rate using the traditional (plantwide) approach is:
= $1.81 per direct labor cost.
b) The overhead rates using the activity-based costing approach:
Machining activity = $80.32
Machine setup activity = $231.42
c) The traditional approach overallocated total overhead by $515 than the activity-based approach.
Under the traditional approach, overhead allocated to the Custom product was $27,940 more than under the activity-based approach.
Similarly, under the activity-based approach, overhead allocated to the Standard product was $27,425 more than under the traditional approach.
The difference in the two being the overallocated overhead of $515 stated above.
Explanation:
a) Data and Calculations:
Estimated overhead costs = $309,000
Overhead allocated:
Machining activity = $200,000
Machine setup activity = $109,000
Standard Custom Total
Direct labor costs $59,000 $112,000 $ 171,000
Machine hours 1,380 1,110 2,490
Setup hours 101 370 471
Overhead rate using plantwide approach:
Total overhead/Total direct labor costs
= $309,000/$171,000 = $1.81 per direct labor cost
Overhead rates, using activity-based costing:
Machining activity = $80.32 ($200,000/2,490)
Machine setup activity = $231.42 ($109,000/471)
Overhead Allocation
Standard Custom Total
Plantwide $106,790 $202,720 $309,510
($59,000 * $1.81) ($112,000 * $1.81)
Activity-based:
Machining $110,842 $89,155 $199,997
(1,380 * $80.32) (1,110 * $80.32)
Machine setup 23,373 85,625 108,998
(101 * $231.42) (370 * $231.42)
Total costs $134,215 $174,780 $308,995
Difference $27,425 $27,940 $515
Discuss the concept of 'Price Determination'
Answer: Price determination is the interaction of the broad. forces of supply and demand which “determine” or. cause the market price level. Price discovery is the process of buyers and sellers.
Explanation:
which of the following is considered a decision variable in the media selection problem of minimizing interview costs in surveying? group of answer choices the total number surveyed the number of people to survey in each market segment the overall survey budget the number of people to conduct interviews
The three audience measurements that advertisers typically use for both print and electronic media choices are audience size, audience demographics, and exposure distribution throughout the audience.
What factors affect the media selection?Language variety, social class, literacy rate, cultural considerations, and legal restrictions are some of these elements. Additionally, they cover media accessibility.
What does choosing and planning media involve?Media planning is the process through which marketers decide how, when, and where to communicate a specific advertising message to an audience. Media planners assess the target audiences, platforms, and advertisements to determine the most effective way to reach them.
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According to the international Fisher effect, if investors in all countries require the same real rate of return, the differential in nominal interest rates between any two countries:
The International Fisher Effect (IFE) states that when two countries have different nominal interest rates, the difference between them is equal to the expected difference between the two countries which is due to their inflation differentials.
This theory was first proposed by economist Irving Fisher in 1930 and has become one of the most important theories in international finance. According to the IFE, if investors in all countries require the same real rate of return, the differential in nominal interest rates between any two countries should be equal to the expected difference between the two countries in the rate of inflation.
For example, if the expected rate of inflation for the U.S. is higher than the expected rate of inflation for Japan, then investors in the U.S. should expect to earn a higher nominal interest rate on investments in the U.S. relative to investments in Japan. This is because the expected rate of inflation in the U.S. is higher than the expected rate of inflation in Japan, so the real rate of return will be higher in the U.S. than in Japan. This, in turn, leads to an increase in nominal interest rates.
The International Fisher Effect is an important theory in international finance because it provides a way for investors to compare returns on investments across countries. By understanding the expected difference in inflation between two countries, investors can adjust their expectations for the nominal interest rate they will receive when investing in the different countries. This theory also helps to explain why some countries have higher nominal interest rates than others.
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Complete question :
Options-
follows their exchange rate movement.
is due to their inflation differentials.
is zero.
is constant over time.
Determine Rainie s stock-Bse tompu M8-27. Identifying, Analyzing and Explaining the Effects of a Stock Split On September 1, Weiss Company has 300,000 shares of $9 par value (S148 market value) common stock that are issued and outstanding. Its balance sheet on that date shows the following accoumt ances relating to its common stock. Paid-in capital in excess of par value. 1,680,000 On September 2. Weiss splits its stock 3-for-2 and reduces the par value to $6 per share. a. How many shares of common stock are issued and outstanding immediately after the stock splic b. What is the dollar balance of the common stock account immediately after the stock split? c. What is the likely reason that Weiss Company split its stock?
If 450,000 shares of common stock are issued and outstanding immediately following the stock split, and the balance of common stock is unchanged, the balance remains at $270,000.
What is common stock?Common stock is a type of security that represents corporate equity ownership. Outside of the United States, the terms voting share and ordinary share are also commonly used.
In the United Kingdom and other Commonwealth countries, they are referred to as equity shares or ordinary shares.
a. Computation of number of shares of common stock are issued and outstanding immediately after the stock:
According to the given information,
300,000 Share*3/2 = 450,000 common stock are issued and outstanding immediately after the stock.
b. Computation of dollar balance of the common stock account immediately after the stock split:
As per the given information, the balance of common stock is unchanged stock split, then the balance remains at $270,000.
c. Determination of reason that Weiss Company split its stock:
The given company may have splinted its stock to reduce the market price of stock and improve the stock's marketability.
However, earnings per share will go down.
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what can you say about the relationship between the equilibrium price, and marginal cost and marginal revenue? what does this imply in terms of competition in this market?
The additional cost a company faces when producing one more good or service is known as the marginal cost. The additional rise in revenue that a company experiences after producing one more good or service is known as marginal revenue, on the other hand.
In general, marginal revenue tends to decline as production rises for any given level of customer demand. There is no economic gain in equilibrium since marginal revenue and costs are equal on a marginal basis. In the real world, markets never reach equilibrium; instead, they simply gravitate to an equilibrium that is constantly shifting. Marginal revenue for a company with perfect competition is the same as average revenue and pricing. This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve. If the price falls below the average variable cost, the company shut down.
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Which area represents the consumer surplus resulting from the profit maximizing price charged by this monopolist? Select one: a. A + B b. A+B + C + D c. A+B+C+D+J d. J+H e. D + I
a. Consumer surplus is area below the demand curve and above the price.The monoplist price is 6.5. So, consumer surplus is area A+B
A price ceiling or floor differs from the other in that respect. The lowest cost for a good is known as a price floor. The most that can be paid for a good is known as a price ceiling. The legally mandated minimum price is referred to as a price floor. A supplier cannot ostensibly sell for less than this price, according to the price. On the other hand, a price ceiling refers to the highest price that is governed by the government. Suppliers of products and services with a price cap are not expected to sell above the specified upper limit.
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Employer liability for employee injuries, accidents, or wrongs is largely dependent on whether the employee was _____ at the time of the incident in question.
A. aware of her wrongdoing
B. full-time
C. on the job
D. legally competent
On the job. This is the necessary response to the posed question (C).
What are the liabilities of employer on accident?The employer is responsible for providing compensation to such an employee if an accident-related injury results in his permanent or partial disability for a length of time longer than three days. Under the Act, a permanent or partial disability has been Act[5].
The following responsibilities must be met by an employer if a worker is hurt at work: provide first assistance and medical attention Wherever necessary, an employer has a primary duty to offer urgent first assistance and medical care. Your employer has a responsibility to keep you safe and to inform you of health and safety risks that concern you.
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TRUE/FALSE. businesses that pay attention to environmental details show employees that they care about guest's satisfaction and service quality, but not necessarily their own employee satisfaction..
Businesses that pay attention to environmental details show employees that they care about guest's satisfaction and service quality, but not necessarily their own employee satisfaction. This statement is true
How can service providers assist clients in managing information overload?Utilizing cues like odors or noises that bring back memories to help visitors respond appropriately to a service setting is one technique to assist them cope with information overload. The employees' dress at the hospitality company contributes to the atmosphere.
The hotel management agrees to guarantee the protection of guests, including their lives, health, and property, in addition to offering comfortable lodging and assurances of restful sleep. Because of this, the area of hotel security and safety requires the strictest oversight.
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the blank rate is the primary tool the fed uses to conduct monetary policy today and the blank is a supplementary tool
The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations.
How to figure out the discount rate.The WACC and adjusted present value are the two main formulas for calculating the discount rate (APV). WACC = E/V x Ce + D/V x Cd x (1-T) is the formula for the WACC discount, and APV = NPV + PV of the impact of financing is the formula for the APV discount.
The discount rate for 2022 is what?The Federal Reserve Board gave its approval to a decision made by the board of directors of the Federal Reserve Bank of Kansas City on Wednesday to raise the bank's discount rate, or primary credit rate, from 1-3/4 percent to 2-1/2 percent, with effect from July 28, 2022.
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In this Decision Point activity, you began to explore game theory: specifically, how your outcomes are dependent not just on your own choices, but also on the reactions of competitors. Use what you learned from this decision point, and information from the chapter to answer the following question. Suppose Nike and Adidas are considering whether to develop new advertising campaigns. For each pair of strategies, the blue triangle shows Nike's payoff and the yellow triangle shows Adidas's payoff, in billions. Use this information to complete the sentences. The best outcome for Nike is to choose Nike's choices not to advertise and for Adidas to Advertise Do not advertise choose to advertise $6b -$3b If Adidas chooses not to advertise, their best result will happen if Nike chooses Advertise $6b $14b to advertise Adidas's choices The Nash equilibrium for this advertising game is $14b $10b for Nike to choose to advertise Do not advertise and for Adidas to advertise -$3b $10b Answer Bank
If Adidas decided not to advertise, it would be the best outcome for Nike. The commercial impact of Nike's choice to not advertise will be greatest if Adidas chooses not to market.
What sentence would be appropriate for the outcome?The best way to phrase your sentence with the term "outcome" This was the only conclusion we could agree on. You'll likely be happier with the outcome this evening. We alone are in a position to influence how this plays out.
What does a negative outcome imply?Negative effects include deterioration and failing to uphold or advance. Even if the faulty behaviour has no visible negative consequences, failing to follow a criterion nevertheless counts as a defect. The focus on results is not common in standards.
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A function of a(n) is to raise money to help elect individuals who regard their organization positively or to promote a particular issue related to their industry. (Enter the acronym in the blank.)
A function of a(n) PAC is to raise money to help elect individuals who regard their organization positively or to promote a particular issue related to their industry.
A political action committee (PAC) is an organization that raises money to be distributed to politicians that support the same concerns as the contributors. subsidy. A monetary payout or other sort of assistance provided by the government to an individual or organization.
A committee that accumulates funds to support or oppose politicians. PACs typically represent corporations, labor organizations, or ideological causes. A political action committee (PAC) of an organization raises funds from its workers or members and donates to parties and candidates on their behalf.
A PAC's principal aim is to generate and distribute monies in order to advocate for the political interests of its members.
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Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
social dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people
A business man who temporarily lives and/or works outside of their place of citizenship for professional reasons is referred to as an expatriate. Another way to describe it is as a person who moved from their nation of origin to another permanently or for a prolonged period of time. An allowance is a predetermined amount of money given by employers to employees to cover expenses above and beyond basic wage. It can also be described as an amount that is allowed or permitted in accordance with some rules or for a particular purpose.
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
1. social
2. physical
3. economical
4. beliefs
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A financial institution has a higher degree of interest rate risk on a ____ than a ____.
a. 30-year fixed-rate mortgage; 15-year fixed-rate mortgage
b. 30-year variable-rate mortgage; 30-year fixed-rate mortgage
c. 15-year fixed-rate mortgage; 30-year fixed-rate mortgage
d. 15-year variable-rate mortgage; 15-year fixed-rate mortgage
A financial institution has a higher degree of interest rate risk on a 15-year fixed-rate mortgage than a 30-year fixed-rate mortgage.
What comprises a mortgage?Principal, interest, taxes, and insurance make up the majority of mortgage payments. Your outstanding loan balance is reduced by the amount in the principal part. Borrowing money has a cost, which is interest. Both the interest rate and the loan balance affect how much interest you pay.
Is getting a mortgage wise?It can assist you in earning money and raising your overall net worth when applied effectively. A mortgage is also one of the most affordable forms of debt. Interest rates are low, and you can pay even less after deducting your mortgage thanks to federal and state tax advantages.
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Generally, there are covenants between the borrower and the lender within a mortgage document. Which of the following is a mortgage covenant?
Agree to refinance only with the current lender.
Give the lender first right of refusal.
Move all checking and savings account to the lender's institution.
Pay any charges and assessments against the property.
A mortgage covenant in the following is "Pay any charges and assessments against the property."
Simply said, "promise" is another synonym for "covenant." Banks incorporate covenants in loan agreements to protect their status as lenders and to increase the possibility that a loan will be repaid by the borrower/business owner promptly, fully, and in compliance with the loan's terms and circumstances.
Loan covenants clearly state what the business owner commits to doing with regard to the capital structure of the company during the loan or line of credit's duration. These commitments made by business owners can vary, and while most loan papers include some of the instances of loan covenants discussed in this essay, not all of them do.
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which of the following statements accurately describe the similarities and differences between mortgage bankers and mortgage brokers? check all that apply. mortgage brokers are often able to reduce the loan-shopping time, hassles, and red tape for their customers. although mortgage brokers often appear to work on behalf of their borrowing customers, they are ultimately paid by the mortgage lender. many mortgage bankers ultimately sell the mortgages that they create.
These descriptions of the similarities and distinctions between mortgage bankers vs mortgage brokers are all accurate.
Authenticity of mortgage brokers:Mortgage brokers are authorized and qualified financial experts who handle a lot of the grunt work. They collect your paperwork, check your credit report, and confirm your employment and income. With this information, they can help you quickly apply for credit and negotiate terms.
Do mortgage brokers run a credit check on you?Simply said, lenders do not take into account one of the Credit Ratings you have seen online. Instead, mortgage brokers will carefully examine the data on your credit report as well as application information like your income, expenses, and down payment, for example, to determine your trustworthiness and affordability.
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lukas takes part in an experiment. he is subject to electrical brain stimulation. he reports to the researcher conducting the experiment that he hears clicks during the stimulation. the part of the brain that causes him to hear the sounds is known as the group of answer choices association area. attribution area. auditory area. assessment area.
Lucas hears clicks during electrical stimulation of his brain. The part of the brain that triggers the hearing of clicks (sounds) is called the auditory area (cortex).
What is the function of the auditory cortex?The primary auditory cortex is located in the Heschl gyrus, an area present behind the superior temporal lobe within the supratemporal plane. The auditory cortex of the human brain receives and processes sound, vocal, or musical content.
What is hearing range in psychology?A sensory area of hearing located above the temporal lobe of the cerebral cortex. It receives and processes sound signals from the medial geniculate nucleus of the thalamus, the main structure along the auditory pathway.
What are the basic hearing loss?The three basic categories of hearing loss are sensorineural hearing loss, conductive hearing loss, and mixed hearing loss.
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which of the following best explains how income taxes can moderate a business cycle during an expansion?
Tax payments increase automatically as gross domestic product (GDP) rises, which dampens consumption spending.
The standard measurement of the value added produced via the production of goods and services in a nation over a specific time period is the gross domestic product (GDP). Consequently, it also accounts for the revenue generated by such manufacturing, or the total amount spent on finished products and services (less imports).
For instance, if Country B produced 5 bananas value $1 each and 5 backrubs of $6 each in a year, the GDP would be $35. The GDP of Country B would be $40 if the price of bananas increased to $2 the next year and the amount produced remained same.
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Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $50. A point on Sam's budget constraint would be:
Multiple Choice
20 tanning sessions and 8 rounds of golf.
10 tanning sessions and 5 rounds of golf.
10 tanning sessions and 4 rounds of golf.
5 Tanning sessions and 2 rounds of golf.
Sam will not be able to afford all combinations given in the other options as they will cost him more than his money income.
What is a budget constraint?In the field of economics, a budget constraint refers to all the possible combinations of goods and services that a consumer could buy at the market's current pricing and within the limits of his or her available budget. The notions of a budget restriction and a preference map are tools used by consumer theory to explore the dimensions of consumer choices. The total number of things you can buy with your present budget is your budget constraint. The range of options possible within a certain budget is illustrated by a budget limitation. Opportunity cost is the sum or object you forfeit in favor of something else.
Sam's budget constraint would be five training sessions and two rounds of golf since five training sessions will cost him $100 and two rounds of golf will cost him $100 as well. Sam will not be able to afford all of the combinations given in the other options as they will cost him more than his given money income.
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2. If Canada spends 20 hours producing a refrigerator and 10 hours producing a stove, and France spends 12 hours producing a refrigerator and 5 hours producing a stove, which of the following are true?
Select the correct answer below:
a. Canada has an absolute advantage in producing refrigerators
b. Canada has absolute advantage in producing stoves
c. Canada has absolute advantage in producing both goods
d. France has absolute advantage in producing both goods
A country has an absolute advantage over another country in producing a good if it uses fewer resources to produce that good. Hence, option(A) is correct.
How does absolute advantage work?Absolute advantage is the capacity of a person, business, area, or nation to produce more of an item or service with the same amount of inputs per unit of time than its rivals or to generate the same amount of a commodity or service with fewer inputs per unit of time.
The ability of a party to provide an item or service more efficiently than its rivals is known as the principle of absolute advantage in economics. The idea of absolute advantage was initially put forth in the context of international trade by Scottish economist Adam Smith in 1776, using labor as the only input.
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tis the business od little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death
Figurative language, which deviates from the usual sequence and meaning of words in order to express a complex meaning, colourful writing, clarity, or emotive contrast.
What is Figurative Language?Figurative language is when words are used in a way that differs from their usual sequence and meaning in order to express a complex meaning, colourful writing, clarity, or emotional comparison.Figurative language refers to wording that deviates from the literal meaning of words in order to convey a message or make a point. Originally from the Old French term "figuratif," which means "metaphorical," this definition originates to the middle of the nineteenth century.Figurative language refers to the use of words in a way that differs from their usual sequence and meaning in order to express a complex meaning, colourful writing, clarity, or emotional contrast.Complete question :
“’Tis the business of little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death. My own line of reasoning is to myself as straight and clear as a ray of light.” In this excerpt, Paine uses figurative language to
Explanation :
When he says, "My own line of reasoning seems to me as straight and clear as a ray of sunshine," he is employing a like-/-as example. If the sun's light is being used as a metaphor for purity or intellect, then he is implying that he is highly rational and aware of what is happening. He is willing to die for what he believes in because he understands what he stands for and, as he said, "would follow his convictions till death."
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Which of the following principles should be followed by business organizations that desire to handle and process customer data in an ethical manner? A) The person or organization that provided the data owns the data and has the right to determine what is done with that data. B) The person or organization that holds another's data should delete any records on the request of the provider including any summarized information derived from the data. C) Companies hold data in trust for the provider and therefore must keep data secure from unauthorized disclosure. D) All of the above
The person or organization that holds another's data should delete any records on request of provider including any summarized information derived from data should be followed by business organizations that desire to handle and process customer data in ethical manner.
What is customer data?Customers' personal, behavioral, and demographic information is referred to as "customer data" or "consumer data" by marketing firms and departments who gather it from their clientele. Customers' privacy is infringed upon to some level by data gathering; therefore, precise restrictions on the kinds and quantities of data that may be gathered must be in place. In consumer analytics, the gathered data is processed. Insights into consumer behavior are thus the goal of data collecting, which will ultimately lead to profit maximization through customer base consolidation and growth. In the age of the internet, explicit online surveys are a popular way to gather client information. However, there are also covert techniques, such as tracking click-through and desertion rates. Customer information is obtained for market research, particularly for studies on customer satisfaction, with the goal of boosting total customer satisfaction.
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T/F the comparison of a purchase to expectations is thought to occur whether theitem purchased is comprised primarily of search, experience, or credencecharacteristics.
The statement is True. The Comparison of purchase to expectations is thought to occur whether the item purchased is comprised primarily of search, experience, or credence characteristics.
A business overall performance contrast Survey (or internal benchmarking) provides firms with the opportunity to examine their performance with comparable firms of their industry or institution; consisting of the better-appearing corporations. the act of comparing two or extra people or things: They made a comparison of different nations' ingesting habits. with the aid of/In assessment with the French, the British consume ways much less fish. You can not honestly draw a contrast between the two cases - they're absolutely distinct.
There are 3 types of viable comparisons: equal, comparative, and superlative. evaluation keys uniquely perceive every single row in a table or a view for both the source and target. whilst comparing information assets, facts compare for sq. The server uses a matching primary key or other unique identifiers in each statistics source because of the assessment key.
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TRUE OR FALSE one of the important factors to consider in the selection of contract type is the degree of risk for the seller and the buyer that each type of contract presents.
The given statement ''one of the important factors to consider in the selection of contract type is the degree of risk for the seller and the buyer that each type of contract presents'' is true.
What is contract selection?The choice of a contract is made based on the scope's ambiguity, the distribution of risk, the requirement for predictable costs, and the significance of achieving deadlines. When the scope is well specified, the whole fixed cost is one price.Fixed-price and cost-reimbursement contracts with the federal government are the two primary categories that are most frequently used. Incentives, time-and-materials, labor-hour, indefinite delivery, and letter contracts are examples of other contract forms.Fixed-price agreements. When someone is certain of the scope of the task, this sort of contract is the best. This contract, sometimes referred to as a lump sum agreement, is the most effective technique to keep expenses down when you can foresee the scope.Learn more about contract refer to :
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the u.n. convention on contracts for the international sales of goods (cisg) includes provisions relating to which of the following?
The UN convention on contracts for the international sales of good includes - it the basis for a widely accepted body of international sales law.
A multinational agreement that creates a common foundation for global trade is the United Nations Convention on Contracts for the International Sale of Goods, also referred to as the Vienna Convention. It has been ratified by 95 nations as of 2022, accounting for two thirds of global commerce.A multilateral international treaty is the CISG. By establishing a consistent rule that regulates contracts for the sale of products internationally, it seeks to boost global trade and decrease trade disputes.-Better shot at getting contract enforced internationally in case of a breach.-Protection for those who forgot to put a Choice of Law provision in the contract.To know more about Goods here
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you own a diversified investment portfolio and wish to hedge it against market declines. which one of the following would be best suited as a cross-hedge for this purpose? group of answer choices
You want to protect your diversified investment portfolio from market drops. The best cross-hedge for this use would be one of the following: selling S&P 500 index futures short (Section 14.5).
What a perfect hedge means Do perfect hedges usually produce better results than defective ones? Describe your response.(2 markings) 4b) 4bi) A flawless hedge entirely removes the danger for the hedger. It's not always better to have a perfect hedge than a flawed one. It simply makes the result more certain. Think about a business that manages its exposure to asset price fluctuations.
How can risk be reduced with options and futures contracts?Options trading provides a practical tool for investors to protect their portfolio from unexpected price drops. A trader can lower their risk exposure and make sure they can still sell their assets at a fair price even if the market moves against them by making an investment in long-term put options.
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price cap regulation is defined as regulation that group of answer choices imposes a price ceiling on the regulated firm. uses average cost pricing to ensure costs are covered. uses marginal cost pricing to ensure efficient output. encourages firms to exaggerate costs to increase profits. is essentially the same as rate of return regulation.
Imposes a price ceiling on the regulated firm, A price ceiling is a government-imposed limit on the maximum price that can be charged for a good or service. It is a type of price control.
When a market's price cap is implemented?Demand outpaces supply when a market's price ceiling is in place. The ceiling price is below equilibrium, which causes this. As a result, more consumers will be able to afford the good while producers charge less. Once a result, as the price ceiling is implemented, supply decreases and demand increases.
What occurs if price controls are implemented by the government?In the field of economics, price controls are limitations imposed by authorities to maintain the affordability of goods and services. They are also employed to establish an open and equitable market. Price limits are intended to reduce inflation and promote market equilibrium.
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Determine the depreciation, for the year of acquisition and for the following year, of a fixed asset acquired on October 1 for $500,000, with an estimated life of 5 years, and residual value of $50,000, using:
a. The double declining-balance method. Assume a fiscal year ending December 31.
Year of acquisition: $
Following year: $
b. The straight-line method. Assume a fiscal year ending December 31.
Year of acquisition: $
Following year: $
The double declining-balance method depreciation for year of acquisition is $200,000 and following year is $120,000. The straight-line method depreciation for year of acquisition and following year is $90,000.
Give a brief account on double declining-balance depreciation method.One of two popular methods a corporation uses to account for the expense of a long-lived asset is the double-declining balance depreciation (DDB) approach, sometimes referred to as the lowering balance method. Compared to straight-line depreciation, which applies the same amount of depreciation each year over an asset's useful life, the double-declining balance depreciation method accelerates the pace at which expenses are recorded. The double-falling approach depreciates assets twice as quickly as the traditional declining balance method.
To solve the question :
(a) Double-declining balance:
To calculate depreciation rate.
Depreciation rate :
= 2 / estimated value
= 2 / 5 = 0.40
To calculate the depreciation for the acquisition year, we multiply the purchase cost by the depreciation rate. The residual value is disregarded.
Depreciation = 0.40 × $500,000 = 200,000
Year of acquisition = $200,000.
We increase the depreciation rate by the asset's book value for the upcoming year. The difference between the asset's acquisition cost and cumulative depreciation is its book value.
depreciation = 0.40 × ($500,000 - 200,000) = 120,000
The depreciation of the following year is $120,000
(b) Straight-line method:
The depreciation follows a straight line and is constant over time. Calculate the annual depreciation now. Formula :
depreciation = acquisition cost - residual value / estimated life
depreciation = 50,000 - 5,000 / 5 = 90,000
The depreciation of the year of acquisition and following year is $90,000
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suppose the government forces the cable company to set its price equal to marginal cost. under this regulation, in the long run, the cable company will suppl
Suppose the government establishes a price regulation. The link organization will supply Q2 link memberships.
At MR = MC, where Q1 units are produced, profit is maximized without government regulation. At the point where the D and ATC curves meet, the government sets average cost pricing. Q2 units are made at the intersection point.
A natural monopoly is a situation in a market where barriers to entry prevent more than one company from entering the market.
Economies of scale and ownership of a crucial natural resource are the barriers to entry that lead to a natural monopoly. Government regulation can control the market to prevent price discrimination, but it cannot induce market entry or exit.
With no government pricing regulation, the equilibrium quantity for profit maximization is 25,000 households per month at a price of $35.
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Full Question = Suppose the government sets a regulatory price using the average-cost pricing rule. Under this regulation, the cable company will supply Q3 cable subscriptions . With this price regulation and without a government subsidy, the cable company will shut down in the long run.
Jonathan intends to have maximum control over his decisions in his business. Which of the following forms of business organizations is most likely to give Jonathan total control over his business decisions?A. sole proprietorshipB. partnershipC. corporationD. S corporationE. limited liability company
Sole proprietorship of the following forms of business organizations is most likely to give Jonathan total control over his business decisions.
What is a business organization?An entity specifically for the purpose of conducting business is a business organization. A system of law controlling contract and trade, private property, and incorporation is the foundation of such an organization.
What is a corporate organization's primary goal?A business organisation is made up of people who cooperate in a planned and organized way to achieve a common objective. The operation of a business is the primary objective of a business organization. A corporate organization is formed when two or more people collaborate to conduct business.
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an important distinction both practically and conceptually is the difference between an easement and a license. all of the following characteristics pertain to a license except:
The contrast between an easement and a license is significant both practically and theoretically. A license has all of the following features, with the exception of: A license lasts forever.
A license to use property differs from an easement in that it can be revoked. An easement transfers title. A license is permission, but an easement is a right. While a license is not for a certain amount of time, an easement is. While a license does not survive the sale of the affected land, an easement does. The ideas that one person has a legal claim to an easement and profit The bearer of a license may also utilize the property of another individual.
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