How does the materials requisition help safeguard a company’s assets?

Q: What type of intangible assets are the Trade name, customer Relationship, the Non-Compete agreement,…

A: Types of Assets: Assets is of Two Types: Current Assets and Fixed Assets   1. Current Assets are…

Q: is amortization of patent included in statement of costs of goods manufactured?

A: The income earned by a corporation after deducting the direct costs of manufacturing its products is…

Q: What organizational form would warehouse operators and truck hauling companies adopt?

A:

Q: Understand accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: What is the general rule for cost inclusion for plant assets?

A:

Q: Explain why an organization should buy or lease when purchasing equipment.

A: Leasing involves the two parties, a lessee and lessor ,Whereas purchasing involves a buyer and…

Q: Classify each of the following costs as either a research expense or as an intangible asset.…

A: In the given question we have asked to classify the above cost which are as below.

Q: Explain the accounting treatment of equipment acquired for use in R&D projects.

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Q: lassification costs

A: A long-term physical piece of property or equipment that a company owns and utilises in its…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a company to include a cost in the cost of an asset is whether it is necessary…

Q: How long will an asset be useful to the company?

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Q: All costs incurred to establish the technological feasibility of a computer software product to be…

A: As per IAS 38 Intangible asset is are identifiable non monetary asset that does not have physical…

Q: Which one of the following statements are related to working capital of a company ? Deals with…

A: Working capital of the company means the difference between current assets and current liabilities.…

Q: Is it possible to control financial totals without physicalcontrol of materials in manufacturing?

A: Manufacturing is the process of large scale production of materials that is generally done through…

Q: Why do we include all the incidental charges relating to the acquisition of a machine in its cost?

A: When a machine is acquired, it needs to be capitalized as fixed assets and depreciation needs to be…

Q: Which element of the value chain would depreciation on a factory be classified as? Design…

A: Depreciation on factory would be classified as production

Q: Determine the acquisition cost of the equipment.

A: EA3) Depreciation under straight line = (Acquisition value - salvage value)/Useful life Acquisition…

Q: Discuss the fundamental risk and control issues associated with fixed assets that are different from…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: It is advisable to locate the facilities close to the raw material source if:

A: Raw material is the basic input of materials for making a product. There are various things which…

Q: What was the acquisition cost of the equipment?

A: Given the salvage value = 15000 Useful life = 10 years Depreciation for 4th year = 63636 If the…

Q: What is the cost of the building? What is the cost of machinery and equipment?

A: Capitalisation of fixed assets means how much cost incurred for the acquisition of long term fixed…

Q: When is a company justified in inventorying scrap?

A: Scrap:   Scrap is basically the residual material that is left after the manufacturing of a product.…

Q: Explain briefly how with examples

A: Environmental accounting: It is the process of reporting the usage of natural resources available in…

Q: What is the purpose of the raw materials subsidiary ledger? How is it related to the general ledger?

A: Definition:   Raw material subsidiary ledger: This ledger refers to the individual account, which…

Q: How can we Evaluate Business and Engineering Assets?

A: Evaluation of Business and engineering asset can be done with the help of the below analysis:…

Q: Assets used for production are secured in a warehouse. Who has custody of fixed assets?

A: Asset means the resource from which economic inflows are expected to flow to the company for one or…

Q: Why does the accounting profession make a distinction between internally created intangibles and…

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Q: Explain the concept of cost allocation as it pertains to property, plant, and equipment and…

A: Property, Plant & Equipment (PPE) includes the following assets namely: Land Plant and Building…

Q: Should a company allow the owners to use the resources as they see fit?

A: solution : Should a company allow the owners to use the resources as they see fit?…

Q: Understand property, plant, and equipment and its related costs.

A: Business have several assets such as cash, inventories, accounts receivables, investments, PPEs…

Q: Which of the following best describes the activities of the materials management function?a.…

A:

Q: Define the term salvage value of the equipment?

A:

Q: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: What are the reasons that cause a firm to construct fixed assets for its own use?

A:

Q: What is the process by which businesses spread the allocation of an intangible asset’s cost over its…

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Q: What are the elements of cost of an item of property, plant and equipment

A: Property, plant, and equipment are the fixed assets that are reported on the assets side of the…

Q: What amount should be used as the cost basis of the equipment?

A: Property, plant and equipment:   Property, plant and equipment are the tangible assets which are…

Q: ) How could rates of technological change affect a company’s decision about whether to buy or lease…

A: Rate of technology plays a crucial role in the decisions made by companies. If the technology is…

Q: Explain the accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: how to allocate the cost of joint products and byproducts?

A: Costs incurred on joint products is known as joint costs. Those costs which are incurred on more…

Q: What factors other than the number of units shipped are likely to affect the company shipping…

A: Shipping expense:   It refers too the cost of postage and related transportation to move the package…