when firms in an industry reach diseconomies of scale at relatively low levels of production then b.) other firms can easily enter the market.
Diseconomies of scale often occur when the production process loses efficiency, increasing the cost of creating additional units of output. Diseconomies of scale frequently result in a company's decreased profitability since they raise marginal expenses.
Diseconomies of scale are not always a negative thing. Instead, it is a wasteful use of resources because it raises the price of commodities over what they otherwise would. This is due to the fact that as a company grows, the cost to create it rises.
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the production cost report presents calculations of the cost of units completed during the reporting period, but does not present any information about the ending work in process inventory. True/False?
The production cost report presents calculations of the cost of units completed during the reporting period but does not present any information about the ending work in process inventory.
Process costing is a costing approach or an operational sort of costing in which a manufacturer tracks the fee of manufacturing a series of non-stop or repetitive approaches required to provide a product.
The cost of finished goods includes all prices along the manner and includes the three fundamental additives that move into the manufacturing of goods -- direct hard work, direct substances, and overhead. similarly, whilst finished items are maintained in inventory, a firm will incur carrying charges.
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the cpi is based on the basket of goods and services purchased by consumers in cities multiple choice question. of at least 250,000 people. of at least 1,000,000 people. of 2500 people or fewer. of 2500 people or more.
The change in the prices of a basket of goods and services that are frequently bought by particular groups of households is referred to as inflation and is monitored by the consumer price index (CPI). Inflation is calculated using the index with 2015 as the base year and is broken down into three categories: total, food, and energy, and total excluding food and energy. The degradation of living standards is quantified by inflation.
A consumer price index is calculated as a set of summary measures of the proportional change in prices from one period to the next for a fixed set of consumer products and services that the reference population purchases, uses, or pays for. Each summary measure is created by averaging a large number of elementary aggregate indices using a weighted formula.
Each of the basic aggregate indices is calculated using a sample of prices for a predetermined group of goods and services purchased in or used by residents of a certain area from a predetermined group of retailers or other sources.
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Years ago mcdonald's switched from styrofoam boxes for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that styrofoam took too long to decompose in landfills. In this situation, mcdonald's was ________.
Concerned that Styrofoam would take too long to decompose in landfills, McDonald's made the switch from Styrofoam to partially recycled corrugated boxes for its large sandwiches many years ago. McDonald's was socially responsive in this circumstance.
What distinguishes social responsiveness from social responsibility?
The fundamental contrast between friendly obligation and social responsiveness is that social obligation is the moral/ethical constraint/obligation of an individual or an element towards the general public while social responsiveness is how an individual or a substance answers a social need.
What examples of social responsibility do you have?
volunteering, donating blood, and working at a food bank or animal shelter are all examples of community service. advocating for political or social issues that can assist others, such as child labor laws, fair trade products, and recycling, are examples of issues that affect society.
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answer yaron prepares tax returns for small businesses. every year he reminds his clients to write the date, amount, and purpose directly on receipts because in some cases the impressions fade. what type of printer was used to generate those receipts?
Thermal printers were used to generate those receipts.
What is thermal printing?
Thermochromic paper, also known as thermal paper, is run through a print head made up of tiny, electrically heated parts to create a printed image in the thermal printing (also known as direct thermal printing) process. When heated, the coating turns completely black, creating an image.
Despite some two-color designs, the majority of thermal printers are monochrome (black and white).
Although it uses comparable print heads, thermal transfer printing uses ordinary paper with a heat-sensitive ribbon rather than heat-sensitive paper.
The following elements are commonly present in a thermal printer:
Heat is produced by the thermal head, which imprints a picture on the paper.A rubber roller that moves the paper is a platen.Pressure from the spring holds the paper and printhead together.
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answer yaron prepares tax returns for small businesses. every year he reminds his clients to write the date, amount, and purpose directly on receipts because in some cases the impressions fade. what type of printer was used to generate those receipts?
costs that do not change in total over wide ranges of volume. 2. technique that estimates profit or loss results when conditions change. 3. the sales level at which operating income is zero. 4. drop in sales a company can absorb without incurring an operating loss. 5. combination of products that make up total sales.
Match the terms with the correct definition.
1. Fixed costs: Expenses that remain the same overall across a wide range of volume.
2. Sensitivity analysis: A method for forecasting profit or loss when circumstances change.
3.Breakeven point:The sales level at which operational income is zero.
4. Margin of safety: The amount of a sales decline that a business can take without suffering an operating loss.
5. Sales mix: The assortment of products that contribute to total sales.
6. Contribution margin is the sum of net sales income and variable expenses.
7. Cost behavior: Explains how costs alter as volumes alter.
8. Variable costs: Expenses whose aggregate changes directly in relation to variations in volume.
9. The volume range that keeps both the total fixed costs and the variable cost per unit constant.
Each term must be paired with its corresponding accurate definition. The phrases are frequently used in relation to sales management and business.
For instance, fixed costs include indirect expenses like as rent, salaries, property taxes, insurance, depreciation, and more that remain constant overall over a wide range of volume and regardless of the degree of output (goods and services).
Additionally, variable costs include expenses such as sales commission, electricity costs, raw material costs, credit card fees, direct labour costs, etc. that alter overall in direct proportion to changes in the volume of goods and services.
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the constant growth dividend model would be useful to determine the value of all, but which of the following firms? a firm whose earnings and dividends are growing at a fairly steady rate a firm whose earnings and dividends are declining at a fairly steady rate a firm whose expected sales, profits, and dividends are fluctuating a firm whose sales, profits, and dividends are growing at annual average compound rate of 5 percent
The correct option is "a firm whose expected sales, profits, and dividends are fluctuating" for the constant growth model of dividend.
Define the term constant growth model of dividend?A Constant Growth Model is a method of assessing shares. It also goes by the name Gordon Growth Model and is based on the idea that a company's dividend payments will always increase at a fixed pace.
It aids investors in estimating the current reasonable amount to pay for such a stock in light of potential dividend payments.With a method that takes into account that the consistently rising dividend payout is important for the stock's value, one may determine the fair value of each share for a corporation that pays out a rising dividend. The minimum return on investment that investors will tolerate in order to keep the stock is known as the Required Rate of Return (RRR). In rare instances, the market assessments for a stock's fair value could differ from the counts calculated through using Gordon Growth Model. This does not imply that the equation is flawed. In actuality, it indicates that the dividend stream's forecast was incorrect.Thus, for the following corporations, except one whose anticipated sales, profitability, and dividends are volatile, may be valued to use the constant growth dividend model.
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Which of the following stages of the product life cycle is likely to utilize reminder advertising for marketing communications as profit margins narrow?
a. Maturity stage
b. Decline stage
c. Introduction stage
d. Cannibalization stage
e. Growth stage
The maturity stage of the product life cycle is likely to utilize reminder advertising for marketing communications as profit margins narrow.
The maturity level takes place after the advent and boom ranges. The maturity level is the longest degree of the product existence cycle. on this level, income increase begins to say no; the organization reaches the best point inside the call for the cycle; and advertising strategies have minimum effect on income growth.
The growth and maturity stages of a product life cycle are:-
retaining product first-rate and including features or assist offerings for the product.retaining pricing to increase demand for the product.increasing distribution channels to address demand.aiming promotion at a much wider target audience.A maturity degree is when a product has been set up inside the marketplace in the p.c. adulthood degree of a product is stated to be attained whilst the product has reached its top in income and the extent income boom tends to stagnate.
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fink insurance collected premiums of $17,400,000 from its customers during the current year. the adjusted balance in the deferred premiums revenue account increased from $6.0 million to $8.6 million dollars during the year. what is fink's revenue from insurance premiums recognized for the current year?
A contract for insurance protects specific future risks and losses between the insurance company and an individual or group of individuals.In exchange for protection, the client will have to make deferred payments.
Collections of cash: $17,200,000
In accounting, how is insurance accounted for?
Toward the finish of any bookkeeping period, how much the insurance payments that stay paid ahead of time ought to be accounted for in the ongoing resource account, Prepaid Protection.After inventory, the prepaid amount will be shown on the balance sheet and may be included in an item called prepaid expenses.
An essential protection diary section is Charge:Credit for Insurance Expense:Bank account for insurance payments for business insurance.Business expenses are not all deductible* for insurance premium payments.Some protection installments can happen to the Benefit and Misfortune Report and some should go on the Monetary record.
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Question: at a level of 20,000 units sold, gail corp. Has sales of $400,000, a contribution margin ratio of 40%, and a profit of $40,000. What is the break-even point in units? multiple choice 12 000 8. 000 20,000 15. 000 1
15,000 units is the break-even point. In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
How to calculate break-even point ?In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or even. Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has broken even.
Total cost = variable cost x number of units + total fixed cost (TC = VC*X + FC). This is also known as the cost function.
At break-even point, TR = TC.
One of the most widely used financial analysis concepts is the break-even point, which is not just useful for economists but can also be used by business owners, accountants, financial planners, managers, and even marketers.
Fixed costs are ($400,000 × 40%) - $40,000 = $120,000.
Break-even point is $120,000/0.40 = $300,000 in sales,
and $300,000/$20 = 15,000 in units.
The break-even point is 15,000 units
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at which of the capability maturity model integration maturity levels, are processes well defined, understood, and consistent across the organization? a. initial b. defined c. managed d. quantitatively managed
Maturity levels, are processes well defined
What is maturity at Level 3?Maturity According to Tutorials Point, Level 3 refers to your organization's processes being "fully characterized and understood and are described in standards, procedures, tools, and methodologies." Processes should be well defined, well-documented, and, to some extent, improved over time. A process that is highly mature means that you have the data necessary to comprehend how it is working, how variations in its implementation and execution effect performance, and what the likely costs and benefits of any modification will be. Statistical and other quantitative techniques are used to govern these chosen subprocesses. Process management uses quantitative objectives for process performance and quality as criterion.
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4.according to standish, more than 50% of all it projects experience cost overruns of 51% or more true or false
Underestimation is the primary cause of project failure - True. Cost estimators underestimate cost while budgeting, planners underestimate time required.
Learning is linear - False
Learning can linear and non - linear learning. Though linear leaning does not exist in nature.
Cutting costs is important and should be a perpetual effort- True
Profit generated by cutting cost can be used by the organization in various other fields
“Rough order of magnitude” estimates are most often associated with Parametric cost estimating- True
A Rough Order of Magnitude Estimate is an estimation of Projects estimates and cost to complete the project.
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why is self-representation important in the corporate world ?
The way you communicate with your coworkers is affected by it.
What does the self represent?The act of portraying oneself includes the manner in which individuals exhibit themselves to others or to oneself (e.g., self-concepts, self-presentation). The affecting self is concerned with how people enable or restrict their own characteristics and activities (e.g., self-enhancement, self-regulation).
Customers and clients are more willing to use brands when they recognize themselves. As previously mentioned, having a more diversified workforce will not only assist a company better understand a wider audience, but it will also draw in a more varied clientele.
How do representational skills work?Cognitive abilities required for mental representation of persons, things, and events, including the use of words and images.
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What approach do businesses use to examine the whole chain of activities that contributes to the production of their product?.
An in-depth examination of every step a company takes, from acquiring materials to producing, distributing, and selling its goods or services, is known as a value chain analysis. This analysis provides business owners and managers with in-depth understanding of their company's major cost and profit centers.
What are the two methods for analyzing the value chain?
The value chain analysis can be done in two ways: Strategic Management Insight says that cost and differentiation advantage are advantages.
What exactly is a value chain strategy?
The various business activities and procedures involved in the production of a product, or the provision of a service are referred to as the "value chain."Multiple phases of a product or service's lifecycle—from research and development to sales and everything in between—can be included in a value chain.
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the stock of red's hardware closed at $57.10 per share today. tomorrow morning, the stock goes ex-dividend, paying a dividend of $1.70 per share. the tax rate on dividends is 25 percent. all else the same, what price will the stock open at tomorrow morning?
The stock open at tomorrow morning is: Ex-dividend price equal to $55.83
What is Ex-dividend price?A stock is referred to as being ex-dividend if it no longer carries the value of the upcoming dividend payment. The day the stock begins trading without the value of its upcoming dividend payment is known as the ex-dividend date or "ex-date."Dividend after taxes equals $1.70 (1 .25)
Dividend after taxes is $1.28.
$57.10 x 1.28 is the ex-dividend price.
$55.83 is the ex-dividend price.
The share price often declines by the dividend amount paid when a company goes ex-dividend to reflect the fact that new shareholders are not eligible for that payment. Earnings can be diluted when dividends are distributed as stock rather than cash, which may also have a short-term negative effect on share values.To learn more about Ex-dividend price refer to:
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consider the components of the national savings and investment identity, categorized below. each scenario will affect one component of the identity. classify each scenario according to the component it will affect. a worker's contribution to a retirement fund is a farmer buying a new tractor is a decrease in automobile exports is a domestic company building a factory is the government building a bridge affects mitchell quitting his job to go back to school affects an increase in french wine imports is an inflow of foreign capital. a family cutting down on expenses affects private domestic savings.
private domestic savings, private domestic investment, an inflow of foreign capital, private domestic investment, government budget deficit, private domestic savings, an inflow of foreign capital and private domestic savings.
A worker's contribution to a retirement fund is private domestic savings.
A farmer buying a new tractor is private domestic investment.
A decrease in automobile exports is an inflow of foreign capital.
A domestic company building a factory is private domestic investment.
The government building a bridge affects government budget deficit.
Mitchell quitting his job to go back to school affects private domestic savings.
An increase in French wine imports is an inflow of foreign capital.
A family cutting down on expenses affects private domestic savings.
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kenji owns and operates a hot dog stand in downtown new york city. in order to operate his hot dog stand, regardless of the number of hot dogs sold, kenji must purchase a permit from the local government in new york city. kenji's initial profit hill is plotted in green (triangle symbols) on the following graph. suppose the price kenji must pay for a permit decreases by $50 per day. on the following graph, use the purple diamond symbols to plot kenji's new profit hill, for 0, 10, 20, 30, 40, 50, 60, and 70 hot dogs, after the decrease in the price of a permit (with all other factors remaining constant).
After the price of permit rises, profit-maximising level of output is 40 hot dogs per day due to same reason, at this quantity total profit is highest.
Moreover, Kenji initially faces a fixed cost of $50. Since at the 0 quantity of hot dogs there is negative profit of $50 which is fixed cost only.
Initially, kenji's profit-maximising level of output is 40 hot dogs per day. Because this the quantity level at which total profit is highest.
So thats why After the price of permit rises, profit-maximising level of output is 40 hot dogs per day due to same reason, at this quantity total profit is highest.
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Of all things that you can show an investor, what is typically the most important item that will convince them to invest in your startup company?.
Of all things that you can show an investor, return is typically the most important item that will convince them to invest in your startup company.
An investor is one the one assigns economic capital accompanying the expectation of a future return or to gain a benefit. Through this assigned capital most of the moment of truth the financier purchases a few classes of features.
There are three types of investors: pre-financier, inactive financier, and active financier. Each level builds on the abilities of the former level beneath it. Startups are companies or ventures that are concentrated on an alone crop or aid that the founders be going to revive or advertise. These guests typically forbiddance have a mature trade model and, more critically, lack enough capital to move upon the next chapter of trade.
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The two primary drivers of most disputes are identity and relational issues.
a. True
b. False
True, identity and interpersonal issues are the two main causes of most disagreements.
Which two main factors contribute to conflict?
Conflict has five primary causes: information disputes, value disputes, interest disputes, relationship disputes, and structural disputes. When people disagree about what data is important or have different or insufficient information, information conflicts occur.
What is the most typical factor that leads to interpersonal conflict?
Conflicts Between People Conflicts are more likely to occur when people are experiencing feelings of frustration, stress, bottled up rage, or when there is a lack of communication about lingering issues that builds up and then "comes out sideways."Conflict is a necessary component of interpersonal relationships.
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If the nominal wage is $30 in 2011 and the CPI is 202 in 2011, then the real wage in 1982-1984 dollars
A) is $29.00.
B) is $1.48.
C) is $14.85.
D) is $30.
E) cannot be calculated without the past year wage rate.
The real wage will be $14.85, considering the value of nominal wage and consumer price index in 2011. Hence, correct option is (c).
Given information:
Nominal wage in $2011 = $30
Consumer Price Index (CPI) = 202
Real wage = Nominal wage/ CPI *100 =
Real wage = 30/202*100 = $14.85
The Consumer Price Index (CPI) tracks changes in consumer prices on a monthly basis in the United States. The CPI is calculated by the Bureau of Labor Statistics (BLS) as a weighted sum of pricing for a range of goods and services that is indicative of total consumer expenditure in the United States.
One of the most widely used indicators of inflation and deflation is the Consumer price index. In contrast to the price index (PPI), which tracks shifts in the prices paid to American manufacturers of goods and services, the CPI report employs a different questionnaire technique, pricing samples, and indexing weights.
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in thinking about how the pandemic of 2020 impacted markets, which of the following are examples of price discrimination? which are not?
The following are examples of price discrimination:
Charging a cheaper price for bulk purchases of tissue paper.
Offering seniors a discount
Selling nose masks at different prices.
The following are not examples of price discrimination:
Having senior hours.
What is price discrimination?
Price discrimination is when the same product is sold at different prices to different groups of customers.
First degree price discrimination is a type of discrimination where the sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
Second degree price discrimination is a type of price discrimination where firms offer different prices depending on the quantity purchased. e.g. selling tissue papers bought in bulk for cheaper.
Third degree price discrimination is a type of discrimination where a business charges different prices to different groups of customers. e.g. Selling nose masks at different prices to different groups of consumers.
Here are the options:
Stores across the United States created “Seniors Hours” during the pandemic, limiting access to stores during certain times to consumers over 60 or with health concerns.
Vera Bradley, a popular woman's retailer, sells two versions of face masks. It costs the firm the same amount of money to produce each mask. However, it sells the mask made of recycled material to customers who identify as eco-friendly for a higher price. It sells the other nonrecycled-material mask to price-sensitive customers.
Toilet paper quickly became a hot commodity during the pandemic, with retailers charging less per unit for packs of toilet paper than they charged for just single rolls.
During the pandemic, restaurants continued to offer discounted Early Bird specials to seniors.
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other things the same, a higher interest rate induces people toa. invest more, so the supply of loanable funds slopes upward.b. save less, so the supply of loanable funds slopes downward.c. invest less, so the supply of loanable funds slopes downward.d. save more, so the supply of loanable funds slopes upward.
Other things the same, a higher interest rate induces people to invest more, so the supply of loanable funds slopes upward.
The cost of borrowing money goes up when interest rates rise, while the yield on savings goes up. Due to this, firms and individuals postpone purchases and take out less credit. In turn, the economy experiences less money flow and lower inflation.
Hence the correct option is A
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when a company has market power, it is in its market. not a price-taker not able to impact the market equilibrium price a producer of nondifferentiated products one of many small companies
The customer is not a price taker when a corporation has market power since it can control the price in the market and charge any price to the customer in accordance with its objectives for profit targets.
A price-taker is a person or business that must accept market pricing as they are because they lack the market share to do so on their own. In a market with perfect competition, or one where every business sells the same good, there are no barriers to entry or departure, every business has a modest market share, and every customer has complete knowledge of the market, all economic actors are regarded as price takers. Buyers and sellers in the debt and equity markets, as well as producers and consumers of products and services, can all attest to this. But just because someone is a market maker doesn't give them the right to establish any price they like.
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what is the first issue that needs to be addressed in order to properly report tangible and intangible assets?
The first issue that needs to be addressed in order to properly report tangible and intangible assets is "Determining the amounts to be included in the assets initial cost."
An intangible is an asset that is not physical in nature. Goodwill, brand recognition and property , like patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist con to tangible assets, which include land, vehicles, equipment, and inventory.
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in what stage of the consumer decision-making process would a consumer consult his or her evaluative criteria?
In the stage of Evaluating alternatives, the consumer decision-making process would a consumer consults his or her evaluative criteria.
The third step in the process of consumer buying decisions is the evaluation of alternatives. Consumers assess all of their brand and product alternatives at this stage based on a scale of characteristics that have the potential to provide the advantage the customer is looking for. Customers frequently use their evoke, inept, and insert sets to help them make decisions throughout the examination of options.
The "evoked set"—the brands and goods they contrast—represents the options they are taking into account while addressing an issue. A variety of innovative management or policy approaches aimed at achieving the goals are produced. Alternatives should represent fundamentally different ways of approaching the issue or distinct priorities among the objectives.
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firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell question 30 options: highly-differentiated consumer goods. goods produced by natural monopolies. agricultural products. products with a limited shelf life such as milk and lettuce.
The correct answer is highly differentiated consumer goods. Firms that sell extremely differentiated shopper products square measure additional possibility to pay an outsized share of their revenue on advertising.
Excellent competition has the biggest variety of suppliers. A natural monopoly is a happening of monopoly thanks to high fastened and start-up value or use of some technological completely different that keeps the opposite corporations out of the market that the firm that gives electricity to all or any homes contains a natural monopoly.
A natural monopoly exists in a very explicit market if one firm serves that market at a lower value than any combination of 2 or additional corporations.
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annie and sam were married for 20 years when annie met and fell madly in love with armando. annie is currently in the process of divorcing sam so that she can quickly marry her new love. which of the following is not proper advice for annie? annie and sam were married for 20 years when annie met and fell madly in love with armando. annie is currently in the process of divorcing sam so that she can quickly marry her new love. which of the following is not proper advice for annie? annie should make an effort to discover forgotten or hidden assets prior to the finalization of the divorce annie should follow through on paperwork to change the titling of assets prior to the financial settlement. annie should create a letter of intent identifying all of the important information that armando should know about her before beginning their future together. annie should change the beneficiary designations on her qualified retirement accounts and iras
Annie should create a letter of intent identifying all of the important information that Armando should know about her before beginning their future together.
The future is the time after the past and gift. Its arrival is considered inevitable because of the life of time and the laws of physics. Due to the apparent nature of fact and the unavoidability of the future, the whole lot that presently exists and could exist may be labeled as either permanent, meaning that it'll exist for all time, or temporary, that means that it will give up.[1] in the Occidental view, which uses a linear conception of time, the destiny is the part of the projected timeline that is expected to occur.[2] In unique relativity, the destiny is taken into consideration absolute destiny, or the destiny mild cone.[3]
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for a given year, the rate of return on all stocks was normally distributed with a mean of 10% and a standard deviation of 8%. an investor randomly chose one stock at the beginning of the year to hold for the course of the year. what is the probability that the rate of return on this stock was at least 9%?
The probability that the rate of return on this stock was at least 9% is 0.8413.
What is stock?
In the world of finance, stock (also known as capital stock) refers to all of the shares that constitute a corporation's or company's ownership. A single share of stock represents a fractional ownership interest in the company based on the total number of shares. This usually entitles this same shareholder (stockholder) to the that portion of the company's earnings, the proceeds from the sale of company assets, or voting power, dividing these items frequently in proportion to the sums invested by each stockholder. Not every class of stock is created equal; some may have enhanced voting rights, no voting restrictions, or a specific priority to receive profits as well as liquidation proceeds either before or after other classes of shareholders.
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are certificates of debt that usually specify a dollar amount to be repaid plus interest at some future date.
Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment.
Investment is the willpower of cash to purchase of an asset to gain growth in fee over a time frame. Investment requires a sacrifice of some gift asset, consisting of time, money, or attempt. In finance, the motive of making an investment is to generate a return from the invested asset. The return may also encompass a benefit (income) or a loss found out from the sale of belongings or funding, unrealized capital appreciation (or depreciation), or investment earnings which includes dividends, hobby, or apartment earnings, or an aggregate of capital gain and income. The go-back can also include currency gains or losses because of adjustments inside the foreign currency trading quotes.
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mohr company purchases a machine at the beginning of the year at a cost of $42,000. the machine is depreciated using the units-of-production method. the company estimates it will use the machine for 5 years, during which time it anticipates producing 55,000 units. the machine is estimated to have a $9,000 salvage value. the company produces 10,600 units in year 1 and 7,600 units in year 2. depreciation expense in year 2 is: multiple choice $4,560. $25,200. $6,600. $16,800. $9,000.
The time period depreciation refers to an accounting technique used to allocate the value of a tangible or physical asset over its beneficial life.
The required details for depreciation in given paragraph
Depreciation base = Cost of machine - Salvage cost = 24000-4000 = $20,000
Yearly depreciation fee = Depreciation value/ Life = 20,000/5 = $4,000
Straight line charge of depreciation = 4,000/20,000 = 0.2 = 20%
Double-declining-stability technique charge = 20*2 = 40% = 0.4
Year 1 depreciation fee = 24000*0.4 = $9,600
Year 2 depreciation fee = (24000-9600)*0.4 = $5,760
Therefore, depreciation fee for yr 2 is $5,760.
Depreciation represents how a good deal of an asset's cost has been used. It lets in businesses to earn sales from the property they personal through buying them over a positive duration of time. Because businesses do not should account for them completely within side the yr the property are purchased, the instant value of possession is considerably reduced. Not accounting for depreciation can significantly have an effect on a company's profits.
Depreciation may be as compared with amortization, which bills for the ex-trade in cost over the years of intangible property.
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A policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. How much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan?
a. full face amount
b. face amount minus the past-due premium
c. face amount minus the loan balance
d. face amount minus the loan balance and past-due premium
A policy owner fell behind on the premium payments of a whole life policy and is now in the grace period. d. face amount minus the loan balance and past-due premium.
Policy is a deliberate device of guidelines to guide choices and attain rational effects. A policy is a announcement of intent and is implemented as a system or protocol. guidelines are commonly followed by means of a governance frame inside an business enterprise.
A set of thoughts or a plan of what to do particularly conditions that has been agreed to officially by using a group of human beings, a commercial enterprise employer, a government, or a political party: They believe that Europe wishes a commonplace foreign and safety coverage.
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