What is Capitalized-Equivalent Cost?

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: What costs should be capitalized for a self constructed asset?

A:

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: Define the term the working-capital investment?

A: The working capital is known as the net working capital which is the measure of the company’s…

Q: Define the term capitalized cost?

A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…

Q: Write the capitalized-cost equation?

A: Answer: Capitalized cost is well-defined as the present value of an annual cost constant over an…

Q: . How are the component costs combined to forma weighted average cost of capital (WACC),and why is…

A: It is the discounted rate that has been calculated by the company on the basis of which present…

Q: How is Working Capital calculated?

A:

Q: What are some economic conditions that affectthe cost of money?

A: The economic conditions that impact the cost of money as follows: Fiscal deficits: The variance…

Q: a present obligation?

A: Given: To explain the economic resource and the present obligation as,

Q: What is intrinsic value or price?

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: What is a joint cost? What is a separable cost?

A: Joint Cost: Joint cost is a cost accounting term, which is referred to common costs incurred in…

Q: What is meant by residual income?

A: Net income: The bottom line of income statement which is the result of excess of earnings from…

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: What is an Acquisition costs?

A:

Q: What is the weighted average cost of capital?

A: The formula to compute weighted average cost of capital as follows:

Q: Does weighted average cost of capital is similar to Cost of Capital?

A: Cost of capital refers to the return expected by the company for making investments in projects or…

Q: How can the Calculation of capital-recovery cost (with return)be done?

A: Capital Recovery Cost: When a company purchases or invest in some assets for the business…

Q: Calculate cost base, and capital gain (Loss), and capital gain tax, i

A: Capital gain/loss are the profits or rains arising from the transfer of a capital asset. It is the…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

Q: Which investment return, expected or actual, does GAAP allow in the calculation of benefit cost?

A: Benefit cost: When an entity creates a benefit plan setting aside some moneys to meet future…

Q: What is the prime cost?

A: Prime costs means cost of direct materials used and direct labour costs incurred. Direct material…

Q: The estimated capitalized cost is $

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: What is an example or scenarios of Capital Allocation Line (CAL)?

A:

Q: what is asset? what is gross profit?

A: Financial statements: These are the financial reports prepared by an organization for a financial…

Q: What are the factor payments for land, labor, and capital?

A: The question is based on the concept of factor payment ,in financial economics factors are consider…

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: what is meant by Capitalized cost?

A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…

Q: What is capitalization and what are its capabilities?

A: Capitalization may likewise state as the idea of changing over some thought into a business or…

Q: What is a capital expenditure versus a revenue expenditure?

A:

Q: What is Economic Value Added ?

A: Economic value added is used for measuring the financial performance of a company based on the…

Q: t is Asset-Accumulation

A: While the asset accumulation method maintains the familiar balance sheet structure, the business…

Q: Explain, using practical example how Capital expenditure should be capitalized?

A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…

Q: What are some advantages of asset allocation?

A: The advantages of applying asset allocation:   Diversification:  Long-term investing:…

Q: What is the profit function?

A: Profit refers to excess of revenue over cost. Profit function shows mathematical relationship…

Q: economic entitiy assumption

A: Accounting Assumptions:                      Accounting professionals are guided by the accounting…

Q: WHAT IS ECONOMIC LIFE OF ASSET?

A: Asset refers to the useful resource of a business entity that is being owned by it that would help…

Q: What is expenditure? explain types of expenditure?

A: Payments or liabilities incurred in exchange for goods or services are referred to as expenditures.…

Q: What should the transfer price be and why?

A: Given that: Transfer price as proposed by Top Division = $256 Price that is charge to outside…

Q: What is Accumulated benefit obligation?

A: