How would each of the following costs be classified if units produced is the activity base? a.
Question:
a. Salary of factory supervisor ($70,000 per year)
b. Straight-line depreciation of plant and equipment
c. Property rent of $6,000 per month on plant and equipment
Step by Step Answer:
1 b...View the full answer
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Managerial Accounting questions
-
How would each of the following be likely to affect the value of the dollar, all else being equal? Explain. a. U.S. stocks are perceived as having become much riskier financial investments. b....
-
How would each of the following events change measured GDP? a. There is an increase in illegal drug sales. b. More women stop being full-time homemakers and enter the labor force. c. An oil spill...
-
How would each of the following changes tend to affect aggregate payout ratios (that is, the average for all corporations), other things held constant? Explain your answers. a. An increase in the...
-
Is it possible to produce an iron-carbon alloy that has a minimum tensile strength of 690 MPa (100,000 psi) and a minimum ductility of 40%RA? If so, what will be its composition and microstructure...
-
A clinical study was conducted to see whether an antibody called denosumab is effective in treatment of osteoporosis of postmenopausal women, as reported in the article "Denosumab in Postmenopausal...
-
In the film Casino Royale, the villain, Le Chiffre, plans to destroy an airliner being developed by Skyfleet. To profit from this, he first buys options on Skyfleet stock. Fortunately, James Bond...
-
Find the undamped natural frequencies of longitudinal vibration of the stepped bar shown in Fig. 12.39 with the following data using consistent- and lumped-mass matrices: \(l_{1}=l_{2}=l_{3}=0.2...
-
Refer to the data regarding Juda Products in Exercise E26-24. Compute the IRR of each project, and use this information to identify the better investment. In Exercise 26.24 Use the NPV method to...
-
A 14-20 Grade 8 Bolt and Nut is used in a non-permanent connection to clamp two 1.000 inch thick Aluminum plates together. The Modulus of Elasticity of the aluminum plates is E = 10.2 E6 psi and the...
-
What is chemical engineering and what are some of the key industries that rely on it? How do chemical engineers optimize chemical processes to minimize environmental impact? What are some of the...
-
Describe the behavior of (a) Total fixed costs and (b) Unit fixed costs as the level of activity increases.
-
In cost analyses, how are mixed costs treated?
-
Which of the following is not an example of tax fraud? a. Using a false SSN. b. Keeping two sets of financial books. c. Reporting information regarding passive income. d. Claiming a blind spouse as a...
-
Why is it important to be able to use different closing methods in different situations?
-
You are the global sales manager for Samsung responsible for sales of their tablet computers. The company has just announced a new model that will be available in five countries starting next month...
-
Identify the five objectives of a sales presentation and develop an example of how a sales presentation would accomplish each one.
-
What measures of location are commonly computed for frequencies?
-
Pick any three of the sources of prospects discussed in the chapter and pick a product or service you like. Develop several ideas for how you would use each source to locate leads for the product or...
-
Explain how the hedge, as described by the fund manager, will eventually expose the portfolio to currency risk. Kamala Gupta, a currency management consultant, is hired to evaluate the performance of...
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Explain the difference between D8 and D in calculation of flow direction.
-
Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal...
-
Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal...
-
Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal...
-
The partners mehak and simran share in the profits and losses equally and their capital accounts have credit balance s of 1 5 0 0 0 and 2 5 0 0 0 respectively. The account balances for Mehak and...
-
LNS Corporation reports book profit of $ 2 , 0 0 0 , 0 0 0 . The $ 2 , 0 0 0 , 0 0 0 included $ 1 5 , 0 0 0 of tax exempt interest income, a capital loss of $ 2 , 0 0 0 , depreciation expense of $ 6...
-
Maggie Vitteta, single, works 3 8 hours per week at $ 1 9 . 0 0 an hour. How much is taken out for federal income tax?
Study smarter with the SolutionInn App