Over what period of time should compensation cost be allocated?

Q: Which of the following elements represents an economic resource? B . Liability.

A: The variables being used to manufacture products or provide services are economic assets. That is to…

Q: Define the term recovery allowance percentages?

A: Tax based depreciation rates are provided by the IRS and are called MACRS which is the modified…

Q: Discuss Present Value of Perpetuities?

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: compensation in commodatum.

A: Commodatum is nothing but a roman law which states that commodatum is an agreement which is a type…

Q: Explain the difference between defined-benefit and defined-contribution plans?

A: Solution:- Pension plans are to provide a security to the retiring employees after their retirement.…

Q: Is recover compensation within? compensation Inco ne ontion from in uranoe

A: Recovery compensation refers to the recover or regain through the agency of government against all…

Q: pay back period?

A: Pay back period = Number of years fully covered + (Remaining part of investment to be covered/Next…

Q: What would the total expense be?

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Differentiate between the accumulated benefit obligation and the projected benefit obligation.

A: ABO (Accumulated benefit obligation) and PBO (Projected benefit obligation) are similar in most of…

Q: In what way is compensation similar to payment? Explain each by giving examples or cases that you…

A: Compensation :  It a payment given in exchange of services.  It is a form of a payment. It can only…

Q: How incrising minimun wages affect compensation ?

A: Raising the minimum wage would make it more expensive to hire low-paid workers as it would be…

Q: What is a prior-period adjustment?

A: Statement of retained earnings: This is a financial statement that shows the amount of net income…

Q: The residual income amounted to?

A: Income is the amount remaining with the company from the Revenue after taking into consideration the…

Q: Describe the decisions about expenditure?

A: Expenditure:   It is the money spent by the organization to purchase or increase the value of their…

Q: The term of Final Payment. Effects of Final Payment.

A: A contract is made so that the work can be done legally and both are bond to fulfill their portion…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: (a) What are the percentage depletion and the cost depletion allowances?

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: How Analysis Period Equals Project Lives?

A: Answer: For the present worth analysis, the definition of analysis period equivalent to project…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: How do the Analysis Period Equals Project Lives?

A: It is PW analysis's best situation. Set the study time to suit the lives of options, in which all…

Q: How are research and development expenses treated?

A: Research and development(R&D) expenses: These  are the expenses which an entity incurs in…

Q: Define historical costs.

A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…

Q: Define net pay.

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: What is future Value of present sum

A: Future value is the value of what a certain asset/cash/instrument will be worth at a future…

Q: Determine the present worth of the series. Determine the future worth

A: Present Value = Cash Flow(1+i)n Future Value = Cash Flow x (1+i)n where, i= Interest rate n= period

Q: What is Capitalized-Equivalent Cost?

A: Cost is the price of something that buyer pays to the seller to purchase that thing.

Q: Define the term an incremental benefit-cost ratio?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: What is the difference between a contribution- and a benefit-orientedretirement plan?

A: Defined contribution plan is a retirement plan which gives an option for the employees to grow tax…

Q: What is an opportunity cost? How is this concept used in TVM analysis, and where is itshown on a…

A: The term opportunity cost from the economics view point is defined as the benefits that have been…

Q: What is the Effective Rate per Payment Period?

A: Answer: The effective rate is nothing but the yearly rate under average compounding, will have…

Q: What is opportunity cost? How is this concept used in TVM analysis, and where is it shown on the…

A: Opportunity Cost is the cost of the next best alternative forgone. In other words, it is the return…

Q: Define defined contribution plan

A: A defined-contribution (DC) plan is a retirement plan that lets an employee to contribute a fixed…

Q: Define relevant costs. Why are historical costs irrelevant?

A: Relevant cost: A cost that is specific in the managerial decision making are called relevant cost.…

Q: Distinguish between costs that are capitalized and costs that are expensed in the period inwhich…

A: A business cost includes all costs such as capitalized cost, the variable cost, direct or indirect…

Q: Return on Plan Assets?

A: Every business needs to incur expenses for paying retirement benefits to the employees. Companies…

Q: required: (d) What is the new Residual income if Proposal 1 is selected? (e) What is the new…

A: The residual income can be defined as the income earned over and above the opportunity cost of the…

Q: What are program services expenses?

A: Non-Profit Organization is legal entity formed to serve the welfare for the people & society. It…

Q: Outline any problems you are aware of associated with the discounting of future costs and benefits…

A: The discounting of future cost means that because that will be incurred in future and discounted…

Q: What is a sunk cost, and if included in a project how should they be treated?

A: Sunk cost is the cost which is already incurred and it is not relevant for decision making. Examples…

Q: Determine the components of postretirement benefit expense

A: Post-retirement benefit expense:   This is an expense to the employer-paid as compensation after the…

Q: Determine the final payment

A: Time value of money(TVM) means that the amount received in the present period will have more…