Answer:
$6.25 per ton of coal
Explanation:
the depletion base = purchase cost + restoration costs
- purchase cost = $20 million
- restoration costs = $6 million
depletion base = $26,000,000
depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal
The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.
The research and testing costs associated with the new ovens is said to arise from a product-sustaining activity.
Explanation:
Product-sustaining activities are carried out where appropriate to facilitate the production of each product type. Types of design-sustaining practices include product requirements, technical improvements and special testing procedures.
Such costs may be assigned to each commodity but are not proportional to the number of manufactured units or quantities. Organisation-sustaining operations support the overall production cycle of an organisation.
The ventilation and maintenance of the building, the protection of the facility and the administration are examples of safe facilities.
Products are allocated the costs for the operations at a unit level, batch level and component level depending on the consumption of each commodity. Goods are distributed randomly or viewed as time expense for purpose of facility-sustaining operations.
Answer:
Explanation:
I think you should google it on the internet
Answer:
e. Company HD has a lower times interest earned (TIE) ratio.
Explanation:
We know that both companies have the same EBIT, because both have the same Basic Earning Power, which is calculated by dividing EBIT by Total Assets.
Then if company HD has a higher debt ratio and higher interest expenses, it means that the Times Interest Ratio in HD company it's lower than LD company, the Times Interest Ratio , it's calculated by dividing EBIT/Interest Expenses, at the same EBIT, but higher interest expenses on HD company, it means a lower Times Interest Ratio to this company.
