ASC 350-30-35-1: Expenses related to intangible assets that have a finite useful life must be capitalized and amortized over the useful life of the intangible assets. 2. ASC 730-10-05-2: Research and development costs are not eligible to be capitalized and must be expenses as incurred. 3. ASC 350-30-35-3: Legal, regulatory, or contractual provisions may limit the useful life of an intangible asset.
When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate. Lowering the unemployment rate will provide more income tax revenue to the government and fewer citizens taking unemployment benefits. Conversely, when exports decrease consumers pay less money for products causing domestic profits to decline and companies are unable to maintain or increase their workforce causing the unemployment rate to
The text mentions several common approaches to use when developing a strategy to close a capacity gap (where utilization of a resource exceeds capacity available). Which of the following is among the common approaches mentioned? Transferring capacity from other units 13. Which of the following is a perpetual system for inventory management? Fixed-order quantity 14.
First you can look at expansion into other markets. A company will only expand if the move will help make them more money overall. Now look at employment, companies only hire people as needed. When they are in season and the work output is needed, people will be hired. If they are out of season and output is down, less help is needed so layoffs will occur.
Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. IT IS Indicator of short-term debt-paying ability. \ Quick Ratio | = | Current Assets - Inventory | | Current Liabilities | |
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
They could charge my business a lot of money on income tax rate and that could cost the organisation a lot of money. This could have an effect on whether I meet my targets or not. Interest rates have an effect on how much I will be paying back in loans and the interest that is charged on the loan I have taken out. Inflation is a factor that I could look at to see how it will affect the amount of money of whether I make or loss in my business. This is because if the government decides to increase taxes then the general public would have less money to spend on the electronic equipment.
Management needs to realize at the beginning of each project to obtain enough information to analyze and interpret properly is a time-consuming commitment. The project may consume more hours and a larger sum of money to complete with the possibility of needing additional time and money. If the company has, an up-to-date database then implementing use of information from it may save time and money. Once the researching and analyzing is complete then management can decide if the new procedures will be effective if implementation takes place within the company at completion of the study. Data Collection Methods Used in Research Data collection methods include identifying the problem and determining if fixing the problem will benefit more than leaving the problem alone.
If the interest rate is low, it will cause more funds to be available, greater expansion and increased employment. If the interest rate is high, it will cause fewer funds to be available, less expansion, and decreased employment. Fiscal policy is an important tool for managing the economy because of its ability to affect the total amount of output produced or the gross domestic product. The first impact of a fiscal expansion is to raise the demand for goods and services. This greater demand leads to increases in both output and prices.
In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e. supplier discounts, interest income. Therefore, Willow Company needs to hold optimum levels of inventory and increase its sales in order to improve its inventory turnover and cash