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...
-
Suppose you need to convert a raster from degree slope to percent slope. How can you complete the task in ArcGIS?
-
For your twenty-first birthday, your grandfather offers you a gift of \($1\),000 today. However, you have the choice of waiting 3 years and receiving \($1\),500 or waiting 5 years and receiving...
-
Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels. As at April 30, 2017, the ledger of Sequel Theatre showed the following: Cash $18,900,...
-
Under the Fair Value through Net Income Method, what events must be recorded when the equity investment is sold?
-
There are 30,488,983 Californians aged 18 or older. If The Gallup organization randomly selects 1068 adults without replacement, are the selections independent or dependent? If the selections are...
-
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?
-
The law requires that the purpose of a contract must be legal. Provide an example of a contract that would not be enforceable because it lacks legality of purpose.
-
Explain why managers might want to build slack into a budget. 2.What role does the budgeting activity play in managerial compensation and performance evaluation? 3.Why will there frequently be a...
-
what ways do advances in imaging technologies, such as super-resolution microscopy, live-cell imaging, and genome-wide chromosome conformation capture (Hi-C), provide insights into the dynamic...
-
Find a degree 3 polynomial with real coefficients having zeros 4 and 3i and a lead coefficient of 1. Write P in expanded form.
-
Consider a 3 0 - year Bond with $ 1 , 0 0 0 face value, 1 0 % annual coupon, paid once a year. Assume that interest rates, hence YTM ( Yield to Maturity ) changed from 7 % to 8 % . How much is the...
-
what ways does the study of the extended phenotype, encompassing the ecological effects, behaviors, and artifacts produced by organisms, expand our understanding of genotype-phenotype-environment...
-
Complete the following: Account a. Gain on Sale of Plant Assets b. Accumulated Depletion c. Loss on Disposal of Plant Assets Category Financial Statement Found on
-
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...
-
Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the...
-
The accounting records of Allen Insulation, Inc. reflected the following balances as of January 1, 20x0: Beginning Inventory: $190 units @ $120 The following transactions occurred in 20x0: January...
-
Sarasota Limited has a calendar-year accounting period. The following errors were discovered in 2023. 1. The December 31, 2021 merchandise inventory had been understated by $50,400. 2. 3. Merchandise...
Study smarter with the SolutionInn App