The depreciable life of an asset is crucial for the financial manager. Generally, a shorter depreciable life is advantageous, as it leads to quicker cash flow circulation. This concept of depreciation allows for the expense of financial or intangible resources to be allocated over their useful lives. It indicates the extent to which an asset's value diminishes over time. For both taxation and accounting, long-term assets can be depreciated, and the duration allocated to these assets significantly influences the cash flow. Hence, shorter depreciable lives are more favorable compared to longer ones due to the expedited influx of cash for finance managers.
Respuesta:
Objetivo de costo = Precio de mercado - Margen de beneficio deseado
= $181 - $19
= $162
Explicación:
El costo objetivo es la diferencia entre el precio de mercado competitivo y el margen de beneficio deseado. En el método de costo objetivo, el precio de mercado está fijado por las fuerzas del mercado. Se resta el margen de beneficio deseado del precio de mercado para obtener el costo objetivo.
Response:
Total Sales= $3,000,000
Clarification:
Based on the following details:
The expectation is to sell 10,000 mattresses over the current year, with 1,000 mattresses available in finished goods inventory at the previous year's close. Armando aims to end this year with at least 1,250 finished mattresses in inventory. There won't be any leftover work-in-process inventory. Each mattress retails for $300.
Production:
Sales projected= 10,000
Ending inventory goal= 1,250
Beginning inventory= (1,000)
Total needed= 10,250
Sales therefore total= 10,000*300= $3,000,000
Answer:
Total period cost is 44,650
Explanation:
A period cost cannot be included in inventory
Under Variable costing principles, fixed costs are treated as period costs.
This results in total period cost = total fixed cost
Fixed manufacturing expenses amount to $9,450
Fixed selling and administrative expenses are $35,200
Summing these, Total Fixed Cost is 44,650
