identifying the benefits and costs of different alternatives by examining the incremental effect on total revenue and total cost caused by a very small (just one unit) change in the output or input of each alternative (Business Dictionary). This brings me to my official point‚ if the marginal analysis conducted by WSJ were fully accurate; they would not include the price from operating the two hubs in San Francisco and Washington D.C. as they are standard fixed costs for United for other routes (whether
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addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million market value of the land was $ 12 million the book value of the old stadium was $ 1 million useful live of the stadium was 40 years demolition cost at end useful live estimated $ 5 million (I take it as estimated $ 5 mio in 2043). Sale of old stadium (millions) The deal (an investment activity): Ciclón received in the deal - cash payment - land - the new stadium (building cost) Ciclón provided in the deal - the
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of the month. b. at the end of the year. c. when the service is performed. d. when cash is received. 5. Adjusting entries are required a. yearly. b. quarterly. c. monthly. d. every time financial statements are prepared. 6. Each of the following accounts is closed to Income Summary except a. Expenses. b. Owner’s Drawing. c. Revenues. d. All of these are closed to Income Summary. 7. Which of these items would be accounted for as an expense? a. Repayment of a bank loan. b. Dividends
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3.3 Evaluate break-even analysis as a decision-making tool. The definition of the Break-even analysis: The break-even analysis is an analysis of a product or company’s sales required to neither lose money nor make a profit‚ but simply to cover costs. Explain in mathematical term: total revenues – total costs = 0. The methods: By using a break-even formula or by drawing a break-even chart. Why is it so important using a break-even analysis? Because it gives vital information about a business or
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|MBA 502A--Financial Accounting: Accounting Cycle Project (KidKare‚ Inc. 2011) | | |General Journal | | |G15 | |Date |Account Titles & Explanations |Ref |Debit |Credit | |Dec30 |Childcare Exp.
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Point of View This case study is discussed from Paperco‚ Inc. point of view of whether they should avail the tax benefits and cost savings in replacing the mechanical drying equipment. Recommendation Based on the analysis below in this memo‚ Paperco should purchase new mechanical drying equipment now in advance in anticipation of the passage of new tax legislation. Purchasing the equipment now maintains a positive Net Present Value for the capital project if the legislation is not enacted
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The employee prepares a purchase requisition and has a supervisor approve it. The supervisor retains Copy 2 of the pre-numbered purchase requisition for the department‚ sends Copy 1 to the Purchasing Department and Copy 3 to Accounts Payable. When the Purchase Department receives the purchase requisition‚ they search the approved vendor list and consult the listed prices for the goods desired for each vendor. Once a vendor has been selected‚ five copies of a pre-numbered purchase order are
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Including irrelevant material. It’s a continual mystery to professors why some students feel compelled to include material that clearly isn’t relevant to the paper. From time to time‚ we even see a confession that these items "aren’t really relevant‚ but they seemed so important that I somehow had to get them in." Resist the urge to throw extraneous material into your paper. Writing a good paper is a matter of judgment—about what to take out as well as what to put in—and irrelevant material detracts
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has reported that the project will require additional manufacturing space‚ and RIC currently has an option to purchase an existing building‚ at a cost of $10 million‚ which would meet this need. The building would be bought and paid for on December 31‚ 2008‚ and for depreciation purposes‚ it would fall into the MACRS 39- year class. The annual depreciation rate for the five years of economic life of the project would be: Year 1 1.3% Year 2 2.6% Year 3 2.6% Year 4 2.6% Year 5 2.6% d. The necessary
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CURRENCY DEPRECIATION AND ITS IMPACTS Devaluation means decreasing the value of nation’s currency relative to gold or the currencies of other nations. Devaluation occurs in terms of all other currencies‚ but it is best illustrated in the case of only one other currency. Devaluation and Depreciation are sometimes used interchangeably‚ but they always refer to values in terms of other currencies and the value of currency is determined by the interplay of money supply and money demand. In common modern
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