Question: Amortisation A company develops a new product at a cost of $400,000. It is anticipated that the product will experience high demand for a period

Amortisation A company develops a new product at a cost of

Amortisation A company develops a new product at a cost of $400,000. It is anticipated that the product will experience high demand for a period of four years. Annual production of the product for the next four years, totalling 16 million units, is forecast to be: a Units (m) Year 1 3.0 Year 2 4.5 Year 3 6.0 Year 4 2.5 Explain how the development cost could be amortised

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