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An industrial drill costs $60.000 to purchase and $10,000 to install seven years ago. The market value now is $33.000 and this will decline by 12% of current value each year for the next 3 years. Operating and maintenance costs are estimated to be $3400 this year, and are expected to increase by $500 per year. How much should the EAC (Equivalent annual cost) of a new drill be over its economic life to justify replacing the old one sometime in the next three years? The MARR is 10%
Limitations of abc analysis
Imperial Sandwich Plc is to be established shortly. The founders are considering their options with regard to capital structure. A total of £5 m will be required to establish the b
OBJECTIVES OF COST ACCOUNTING : 1-DETERMINING SELLING PRICE 2-CONTROLING COST 3- PROVIDING INFORMATION FOR DESING MAKING 4-ASCERTAINING COSTING PROFIT 5-Facilitating preparation of
2001 2002 sale 3200 units 3500 units selling prise Rs.60 Rs.65 unit produced 3400 units 3600 units direct metrial Rs 23 25
What are the journal entries to recognize each of the below events. a. The firm records bad debt expense of 5% of credit sales, which were $300. The firm uses the Percentage
using relevant examples discuss the meaning and scope of cost accounting
Under the average cost method the average cost of goods held in stock is recalculated after each receipt. An issue after the receipts is made at the recalculated average prices. A
Advantages of Standard Costing 1. Management via Exception: the standard costing is an example for management via exception. By studying the variances, management's attentio
Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy
William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe
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