Answer and Explanation:
a. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 725,000 × ($2.95- $3)
= 725,000 × $0.5
= $36,250 unfavorable
b. The computation of the material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $2.95 × (730,000 - 725,000)
= $2.95 × 5,000
= $14,750 favorable
And, the total direct material cost variance is
= Material price variance + material cost variance
= $36,250 unfavorable + 14,750 favorable
= $21,500 unfavorable
Earning money is an incentive to increasing ___________ to purchase___________.
Answer:
incentive, goods is the answer
Answer:
goods
Explanation:
goods is the answer
A market economy is regulated by the interactions between which two things?
Answer:
b is the answer
Explanation:
producers and consumers
Pear Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:
Alternative A Alternative B
Materials costs $ 40,000 $ 56,000
Processing costs $ 37,000 $ 37,000
Equipment rental $ 13,000 $ 13,000
Occupancy costs $ 15,000 $ 22,000
Are the materials costs and processing costs relevant in the choice between alternatives A and B?
Multiple Choice
A) Only processing costs are relevant
B) Only materials costs are relevant
C) Both materials costs and processing costs are relevant
D) Neither materials costs nor processing costs are relevant
Answer: B) Only materials costs are relevant
Explanation:
When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.
In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.
Material costs on the other hand vary by the alternatives and so should be considered.
Explain how to use the decision trees and Monte Carlo analysis for quantifying risk. Give an example of how you would use each technique on an IT project.
Answer:
The answer is below
Explanation:
Decision Tree Analysis is a form or type of quantitative risk assessment tool and techniques that involves a diagram that indicates the significances of choosing one or other alternatives.
In other words, the purpose of the tool is to assist you to select between several courses of action.
For example, lines are drawn towards the right for each possible solution, and then the solution is written along the line. Then evaluation of each alternative can be easily considered.
On the other hand, Monte Carlo Analysis is also a form or type of quantitative risk assessment tools and techniques that utilizes optimistic, most probable, and cynical estimates to infer the total project cost and project completion dates.
For example, an estimate of the probability of completing a project at a cost of $100M can be carried out using Monte Carlo Analysis
x
Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective annual income tax rates for the first two quarters in year x8: quarter income before tax estimated tax rate first $100k 30% second $140k 24% Denver's income tax expense in its interim income statement for the second quarter should be:
Answer:
Denver Company
Income Tax Expense for the second quarter:
Pre-tax quarter income = $140,000
Estimated tax rate = 24%
Tax Expense = $140,000 x 24%
= $33,600
Explanation:
a) Data:
Quarter income before tax estimated tax rate
first $100k 30%
second $140k 24%
b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter. The resulting calculation shows the estimated income tax expense that has to be settled by Denver. If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.
Ý nghĩa lý luận và thực tiễn của tiểu luận
Answer:
talk in English man
please foll and sorry
"Which of the following are covered under the Securities Exchange Act of 1934? I Registration of new issues II Stabilization of new issues III Registration of exchanges IV Registration of broker/dealers"
Answer: II. stabilization of new issues
III. registration of exchanges
IV. registration of broker-dealers
Explanation:
The Securities Exchange Act of 1934 was put in place in order to be in charge of security trading.
From the options, those that are covered under the Securities Exchange Act of 1934 include the stabilization of new issues, the registration of exchanges and the registration of broker/dealers.
It should be noted that the Securities Exchange Act of 1934 does not cover the registration of new issues.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 5.50 pounds $ 2.50 per pound $ 13.75
Direct labor 0.50 hours $ 6.50 per hour $ 3.25
During the most recent month, the following activity was recorded:
1. Ten thousand six hundred pounds of material were purchased at a cost of $2.40 per pound.
2. The company produced only 1,060 units, using 9,540 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
3. 630 hours of direct labor time were recorded at a total labor cost of $7,560.
Required:
Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct materials 5.50 pounds $ 2.50 per pound.
Actual:
1. 10,600 were purchased for $2.40 per pound.
2. The company produced only 1,060 units, using 9,540 pounds of material.
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.5 - 2.4)*10,600
Direct material price variance= $1,060 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
standard quantity= 1,060*5.5= 5,830
Direct material quantity variance= (5,830 - 9,540)*2.5
Direct material quantity variance= $9,275 unfavorable
A report stating whether the company has complied with restrictive covenants related to officer compensation and payment of dividends contained in a bank loan agreement.
Answer: An attestation service other than an audit service
Explanation:
Attestation services is simply when a conclusion is made on the financial statement of an organization or a company by a certified public accountant.
Therefore, it will be a report stating whether the company has complied with restrictive covenants related to officer compensation and payment of dividends contained in a bank loan agreement.
Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to:
Answer: credit to Accounts Receivable
Explanation:
Accounts Receivable is the payment that a particular company will get from the customers who have bought the company's product or services on credit.
Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to account receivables.
You borrow $25,000 to be repaid in 24 monthly installments of $1,212.17. The annual interest rate is closest to:
Answer:
15%
Explanation:
For computing the annual interest rate we need to apply the RATE formula i.e to be shown in the attachment below;
Given that,
Present value = $25,000
Future value or Face value = $0
PMT = $1,212.17
NPER = 24 months
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula,
The annual interest rate is
= 1.25% × 12 months
= 15%
Which of the following is true of email?
A. It’s illegal for employers to monitor it.
B. Many companies monitor employee messages.
C. Deleting ensures the messages are never read.
D. Only the recipient has the ability to open it.
Answer:D
Explanation:
Deming, the proponent of total quality management, argued that management has the responsibility to train employees in new skills.
A. True
B. False
Answer:
Its TRUE
Explanation:
Management should train employees in new skill, where Deming argued that management has the responsibility to train employees in new skills to keep pace with changes in the workplace. In addition, he believed that achieving better quality requires the commitment of everyone in the company.
The Greenbriar is an all-equity firm with a total market value of $584,000 and 22,800 shares of stock outstanding. Management is considering issuing $197,000 of debt at an interest rate of 10 percent and using the proceeds on a stock repurchase. Ignore taxes. How many shares will the firm repurchase if it issues the debt securities
Answer:
7,691 stocks
Explanation:
total market value = $584,000
total outstanding stocks = 22,800
price per stock = $584,000 / 22,800 = $25.614 per stock
management can repurchase $197,000 / $25.614 per stock = 7,691.1 = 7,691 stocks
stocks outstanding after repurchase = 22,800 - 7,691 = 15,109 stocks
All of the following statements concerning the characteristics of aggregate planning for services is true except
A. Group of answer choices
B. Demand is difficult to predict
C. Most services can be inventoried
D. Capacity is easy to predict
E. Labor is the most constraining resource
Answer: D. Capacity is easy to predict
Explanation:
Aggregate planning for services involves organising the business areas of companies engaging in service provision or operation companies that also provide a service.
It is generally held that demand is difficult to predict and most services can be inventoried. It is also held that labor is the most constraining resource.
However, capacity in aggregate planning for services is not easy to predict. This is because services are not standadized and are instead varied and mostly unique. Therefore knowing the capacity to give to a service becomes hard to predict.
A company is considering expanding their production capabilities with a new machine that costs $38,000 and has a projected lifespan of 8 years . They estimate the increased production will provide a constant $5,000 per year of additional income . Money can earn 1.7% per year, compounded continuously . Should the company buy the machine
Answer:
the company should not buy the machine.
Explanation:
Given that:
cost of the new machine = $38000
lifespan = 8 years
constant income = 5,000
Interest = 1.7%
no of days = 365
The value of earning at the time of buying can be calculated as follows:
[tex]= \dfrac{5000}{(1+ \dfrac{1.7}{100})^8}+ \dfrac{5000}{(1+ \dfrac{1.7}{100})^7}+\dfrac{5000}{(1+ \dfrac{1.7}{100})^6}+...+ \dfrac{5000}{(1+ \dfrac{1.7}{100})^0}[/tex]
[tex]= 5000 \begin {pmatrix} \dfrac{1}{(1.017)^8}+ \dfrac{1}{(1.017)^8}+\dfrac{1}{(1.017)^6}+...+ 1} \end {pmatrix}[/tex]
Sum of a Geometric progression [tex]S=a \dfrac{(r^n -1)}{(r-1)}[/tex]
[tex]S=(\dfrac{1}{1.017})^8 \dfrac{((1.017)^9 -1)}{(1.017-1)}[/tex]
[tex]S= \dfrac{((1.017)^9 -1)}{ (1.017)^8(0.017)}[/tex]
S = 8.4211
The value of earning at the time of buying = (5000 × 8.4211)-$5000
The value of earning at the time of buying = $42105.5 -$5000
The value of earning at the time of buying = $37105.5
The Machine price = $38000
If the value - Machine price > 0, then the company should buy the machine
∴
= $ 37105.5 - $38000
= -$ 894.5
Since the value is negative which is less than zero, then the company should not buy the machine.
The company should not buy the machine since it earns a negative NPV of $894.25.
Data and Calculations:
Cost of machine in present value = $38,000
Projected lifespan = 8 years
Additional annual income = $5,000
Compound interest rate = 1.7%
Present value annuity factor for 1.7% for 8 years = 0.13475
Present value of annual income = $37,105.75 ($5,000/0.13475)
Net present value = -$894.25 ($38,000 - $37,105.75)
Learn more: https://brainly.com/question/19131462
Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day. For the month of March, the company planned for activity of 18 snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost for the month was $8,460. The vehicle operating cost in the flexible budget for March would be closest to:
Answer:
Total cost= $8,817
Explanation:
Giving the following information:
Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day.
The actual level of activity was 17 snow-days.
The flexible budget will adapt the standard cost to the actual usage.
Flexible budget:
Fixed costs= 2,510
Variable cost= 371*17= 6,307
Total cost= $8,817
ane is planning to offer a Groupon for inner tube rentals that she will distribute on hot, sunny, summer days by the river that runs through her town. Based on her past experience with Groupon, she has assigned the following probability distribution to the number of tubes she will rent on a randomly selected day. If Jane would like her expected revenue to be at least $300 per day, what should the Groupon price be? (Round your answer up to the nearest whole dollar amount.)
Probability assigned:|
x 30 60 120 180
P(x) .10 .40 .40 .10
Answer:
Jane
Price of Groupon for a revenue of $300 is:
$3
Explanation:
a) Data and Calculations:
Expected Sales volume:
Number of Tubes x 30 60 120 180
Probability P(x) .10 .40 .40 .10
Expected values 3 24 48 18
Total = 93 tubes
Groupon price = $300/93 = $3.23
b) Jane's price for each Groupon will be the rent revenue per day divided by the expected number of tubes to rent daily. The expected number of tubes is derived by multiplying each expected number of tubes by its probability and then summing up the results.
Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to:
Answer:
$30 Favorable
Explanation:
Calculation for the activity variance for supplies cost in March
Using this formula
Activity variance = (Actual units - Budgeted units) * Variable cost
Where,
Actual units=856
Budgeted units=861
Variable cost=$6
Let plug in the formula
Activity variance=(856-861) * $6
Activity variance=5*$6
Activity variance=$30 Favorable
Therefore the activity variance for supplies cost in March would be closest to: $30 Favorable
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $1,424 $140
Accounts receivable (net) 4,000 3,800
Inventory 1,800 1,800
Other current assets 636 591
Total current assets $7,860 $6,331
Total current liabilities $3,930 $3,122
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Instructions:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.
Answer and Explanation:
The computation is shown below:-
1. Current ratio is
= Current Assets ÷ Current Liabilities
= $7,860 ÷ $3,930
= 2
2. Current cash debt coverage is
= Net Cash Provided by Operating Activities ÷ Average Current Liabilities
Average Current Liabilities = ($3,930 + $3,122) ÷ 2
= $3,526
Current Cash Debt Coverage Ratio = $1,251 ÷ $3,526
= 25.48%
3. Accounts receivable turnover is
= Net Credit Sales ÷ Average Accounts Receivables
= $8,258 ÷ (($4,000 + $3,800) ÷ 2)
= $8,258 ÷ $3,900
= 2.12 times
4. Average collection period is
= 365 ÷ Account Receivable Turnover
= 365 ÷ 2.12
= 172.17
5. Inventory Turnover is
= Cost of Goods Sold ÷ Average Inventory
= $5,328 ÷ ((1,800 + 1,800) ÷ 2
= $5,328 ÷ 1,800
= 2.96
6. Days in Inventory is
= 365 ÷ Inventory Turnover Ratio
= 365 ÷ 2.96
= 123.31 days
Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize a nd explain your findings and are the heart of your report. The ability to draw sound conclusions and make clear recommendations from your research is crucial to business success.
When drawing conclusions, make sure you________.
Consider the scenario:
You are making recommendations after researching and writing a report on employee vacation time and job satisfaction. What writing tips should you keep in mind when writing your recommendations?
A. Your recommendations should always be the result of prior logical analysis.
B. Your recommendations should never be in the form of a command.
C. You can combine recommendations and conclusions.
D. You should use words such as maybe and perhaps.
E. You can omit conclusions and move straight to recommendations in short reports.
Answer:
a. When drawing conclusions, make sure you summarize and explain your findings.
b. Tips for writing recommendations:
A. Your recommendations should always be the result of prior logical analysis.
B. Your recommendations should never be in the form of a command.
Explanation:
A good conclusion touches the theme or main topic, summarizes the main points, and connects with the introduction, but with a sense of closure. Conclusions should be sound and logical. Irrelevant conclusions are annoying to the senses. Without a conclusion, the report will sound like one illogical move without clear direction and purpose.
Recommendations should address improvement efforts based on the problem(s) presented in the body of the report.
In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False
Answer:
The answer is A. True.
Explanation:
Marginal Cost is the cost of producing one more product unit.
Marginal Cost = Average Total Cost / Average Goods Output
Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.
Funday Park competes with Fun World by providing a variety of rides.
Funday sells tickets at $85 per person as a one-day entrance fee.
Variable costs are $17 per person and fixed costs are $428,400 per month.
Required:
1. Supposed Funday Park cuts its ticket price from $85 to $68 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars.
a. The new breakeven point in tickets is? _
b. The new breakeven point in sales dollars is? $_
2. Ignore the information in question 1. Instead assume that Funday Park increases the variable cost from $17 to $34 per ticket. Compute the new breakeven point in tickets and in sales dollars.
a. The new breakeven point in tickets is?
b. The new breakeven point in sales dollars is? $_
3. Ignore questions 1 and 2. Supposed Funday Park reduces fixed costs from $428,400 per month to $319,600 per month. Compute the new breakeven point in tickets and in sales dollars.
a. The new breakeven point in tickets is?
b. The new breakeven point in sales dollars is? $_
4. Ignore information in questions 1 - 3. If Funday Park expects to sell 6,400 tickets, compute the margin of safety in tickets and in sales dollars.
a.
- = Margin of safety in units
- =
b.
- = Margin of safety in dollars
- =
5. Ignore information in questions 1 - 4. If Funday Park expects to sell 6,400 tickets, compute the operating leverage. Estimate the operating income if sales increase by 20%.
a.
/ = Degree of operating leverage
/ =
b. Estimate the new operating income if total sales increase by 20%?
The estimated operating income will be? $
Answer:
1. Supposed Funday Park cuts its ticket price from $85 to $68 to increase the number of tickets sold. Compute the new break even point in tickets and in sales dollars.
a. The new break even point in tickets is?
= $428,400 / ($68 - $17) = 8,400 tickets
b. The new break even point in sales dollars is?
8,400 x $68 = $571,200
2. Ignore the information in question 1. Instead assume that Funday Park increases the variable cost from $17 to $34 per ticket. Compute the new break even point in tickets and in sales dollars.
a. The new break even point in tickets is?
= $428,400 / ($85 - $34) = 8,400 tickets
b. The new break even point in sales dollars is?
8,400 x $85 = $714,000
3. Ignore questions 1 and 2. Supposed Funday Park reduces fixed costs from $428,400 per month to $319,600 per month. Compute the new break even point in tickets and in sales dollars.
a. The new break even point in tickets is?
= $319,600 / ($85 - $17) = 4,7400 tickets
b. The new break even point in sales dollars is?
4,700 x $85 = $399,500
4. Ignore information in questions 1 - 3. If Funday Park expects to sell 6,400 tickets, compute the margin of safety in tickets and in sales dollars.
break even point = $428,400 / ($85 - $17) = 6,300
a. Margin of safety in units = (6,400 - 6,300) / 6,400 = 1.56%
b. Margin of safety in dollars = ($544,000 - $535,500) / $544,000 = 1.56%
5. Ignore information in questions 1 - 4. If Funday Park expects to sell 6,400 tickets, compute the operating leverage. Estimate the operating income if sales increase by 20%.
EBIT₀ = [6,400 x ($85 -$17)] - $428,400 = $435,200 - $428,400 = $6,800
EBIT₁ = [7,680 x ($85 -$17)] - $428,400 = $522,240 - $428,400 = $93,840
% change in EBIT = ($93,840 - $6,800) / $6,800 = 12.8 x 100 = 1280%
a. Degree of operating leverage = 1280% / 20% = 64
b. Estimate the new operating income if total sales increase by 20%?
The estimated operating income will be $93,840
Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 24,000 pounds Standard price of direct materials $ 6.00 per pound Material price variance $ 6,000 Unfavorable Material quantity variance $ 2,400 Favorable The actual price per pound of direct materials purchased in June was:
Answer:
$6.25
Explanation:
Given the data below from the above information,
The actual quantity of direct materials purchased 24,000 pounds
Standard price of direct materials price $6 per pound
Material price variance unfavorable -$6,000
Material quantity variance $2,400
Therefore;
Direct material price Variance = (Standard price - Actual price) × Actual quantity
- $6,000 = ($6 - Actual price ) × 24,000
-$6,000 = $144,000 - 24,000 AP
24,000 AP = $144,000 + $6,000
24,000 AP = $150,000
AP = $6.25
Florian just graduated from law school and wants to start his own law firm. It is best for Florian to use a _____ organizational structure.
Answer:
Given that Florian is just starting out and the firm is new, the best organisational structure he can use is the Simple organisational structure.
Explanation:
A simple organisational structure features the CEO in all decision making process. Any new staff would only an extension of his authority.
As the company grow in size, it can become more functional and even adopt a matrix organisational structure. This helps it keep it's size small while making full use of the capabilities of the staff on adhoc projects.
Cheers!
Viral marketing describes everything from paying people to say positive things online to schemes where consumers get commissions for directing friends to specific websites.a. Trueb. False
Answer:
True
Explanation:
Viral marketing is a strategy in which companies use online networks to promote a product or service providing information to many people. This works by creating content like videos that are published on the internet and shared with a lot of people. According to that, the statement is true because viral marketing involves generating different types of online content like messages from influencers to promote your product on social media and reach a big audience.
A monopolist faces a
A. a two-tiered demand curve.
B. a perfectly elastic demand curve.
C. the market demand curve.
D. a perfectly inelastic demand curve.
Answer:
C
Explanation:
According to information found on the production analysis page of the Inquirer, Chester sold 1127 units of Cute in the current year. Assuming that Cute maintains a constant market share, all the units of Cute are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Cute will not be able to meet future demand unless the company adds production capacity
Answer:
1 year
Explanation:
Since it is mentioned that there is a constant market share, also the growth rate is also same so for meeting the future demand, the time period that would be considered is one year as the company should added its production capacity so that it could be in a position to meet the demand else the company is not able to meet its future demand
Hence, year 1 is considered
At an output level of 415,400 units, you have calculated that the degree of operating leverage is 2.00. The operating cash flow is $58,000 in this case. Ignore the essect of taxes. What will be the new degree of operating leverage for output levels of 16,400 units and 14,400 units
Answer:
the new degree of operating leverage for output levels of 16,400 units and 14,400 units will be -0.0858 and - 0.0745 respectively.
Explanation:
From the given information:
the degree of operating the leverage at 415,400 units = [tex]\mathtt{\dfrac{contribution \ \ margin}{operating \ \ income}}[/tex]
where contribution margin = 2 × 58000 =116000
If we assume that the sales price should be p and the variable cost be q per unit .
Then, 415,400p - 415,400q = 116000
p - q = [tex]\mathtt{\dfrac{116000}{415400}}[/tex]
p - q = 0.279 at 415400 unit
Contribution margin = 415400 × 0.279
Contribution margin = 115896.6
The operating income = contribution margin - fixed expense
58000 = 115896.6 - fixed expense
fixed expense = 115896.6 - 58000
fixed expense = 57896.6
However, when the output level is 16400 unit,
the contribution margin = 16400(p-q)
the contribution margin = 16400(0.279)
the contribution margin = 4575.6
The operating leverage = [tex]\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}[/tex]
The operating leverage = [tex]\mathtt{\dfrac{4575.6}{4575.6 - 57896.6}}[/tex]
The operating leverage = [tex]\mathtt{\dfrac{4575.6}{-53321}}[/tex]
The operating leverage = -0.0858
when the output level is 14400 unit,
the contribution margin = 14400(p-q)
the contribution margin = 14400(0.279)
the contribution margin = 4017.6
The operating leverage = [tex]\mathtt{\dfrac{contribution \ \ margin}{contribution \ \ margin - fixed \ \ costs}}[/tex]
The operating leverage = [tex]\mathtt{\dfrac{4017.6}{4017.6 - 57896.6}}[/tex]
The operating leverage = [tex]\mathtt{\dfrac{4017.6}{-53879}}[/tex]
The operating leverage = - 0.0745
Which of the following is not true about amortization of Limited-Life Intangibles a. Amortize by systematic charge to expense over useful life. b. Credit asset account or accumulated amortization. c. Useful life should reflect the periods over which the asset will contribute to cash flows. d. Amortization should be cost less residual value. e. IFRS requires companies to assess the residual values and useful lives of intangible assets at least annually. f. None of the above
Answer:
Amortization of Limited-Life Intangibles:
f. None of the above
Explanation:
IFRS requires limited-life intangibles to be systemically amortized throughout their useful lives using either units of activity method or straight-line method. Intangibles are amortized to reduce their values as per use over their lifespan. Amortization is like depreciation, but depreciation is a term used for tangible assets, while amortization is used for intangible assets.