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Cost of fixed assets includes the cost of asset as well as all costs which are incurred to bring asset to working condition like carriage and installation cost as well.
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What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
How do you calculate fixed cost given total cost and sales volume?
Fixed cost = total cost / sale volume
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
When fixed cost decreases what does this do for the break-even point?
When fixed assets reduces it also reduces the breakeven point because now less number of units required to fulfill the fixed cost.
What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
How do you calculate fixed cost given total cost and sales volume?
Fixed cost = total cost / sale volume
How do you calculate variable cost?
Variable cost = Total Cost/ fixed cost
When fixed cost decreases what does this do for the break-even point?
When fixed assets reduces it also reduces the breakeven point because now less number of units required to fulfill the fixed cost.
What is Gross block?
Gross Block=Cost of fixed assets(cost of accumalating the asset)+depreciation.
What are proceeds from disposal of assets?
Proceeds from disposal of assets is equal to = Total cost of disposed assets- Accumulated depreciation related to assets disposed+ Profit on sale of fixed assets
What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
How do you calculate your variable cost and fixed cost given total costs and sales volumes?
Total Costs = Fixed Cost + Variable Cost soVariable Cost = Total Costs - Fixed Cost.
Is gross block current assets or fixed assets?
fixed assets
How do you calculate fixed cost using total cost and quantity?
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