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Q: What are the disadvantages of using cost model to measure property plant and equipment?
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What are the advantages and disadvantages of Break Even Analysis?

Disadvantages of break even analysis includes: * These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear. * The model is static, it cannot account for changes in environment.


What Is the general Journal Entry to Record investment car in the business?

In accordance with International Financial Reporting Standards (IFRS) investement property is, in short, property held for capital appreciation or rental income. In accordance with this standard the property is initially measured at cost and subsequently at fair value, remeasured through profit and loss (I have assumed that you have not taken the election to measure the vehicle under the cost model). The journal entry would therfore be Dr Inverstement Car Cr Bank/Accounts payable Subsequent changes to the fair value are measured through Profit and Loss being: Dr Fair Value Loss (P/L) Cr Investement Car Loss on Fair Value adjustment for a decrease Or: Dr Investement Car Cr Fair Value Income Gain on fair value adjustment increase in value This is in contrast to any other asset held as Property, Plant and Equipment as, most noticably, the asset is not depreciated (assumed elected fair value model elected) and any increases in value are not recognised in Other Comprihensive Income but in Profit and Loss.


What is incremental model and its disadvantages?

We can get feedback early stage then can do want changes last stage .smaller projects can manage easily and some incremental methods physically decide by others. Most of this process are divided by separate parts so the cost is will be higher .


Constant growth valuation model for stock?

The constant growth valuation model assumes that a stock's dividend is going to grow at a constant rate. Stocks that can be used for this model are established companies that tend to model growth parallel to the economy.


What is the modified Jones model?

Hi, Modified Jones Model which is recognized by name a type of old Jones Model that can very useful for measuring nondiscretionary accruals within a regression.

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Advantages of an incremental model include the ability to measure the progress, lower costs, and earlier results. Disadvantages include the need for more resources, increased attention, and the possibility that flaws may be missed.


Why would a business choose to use revaluation model to measure PPE?

A business may choose to use the revaluation model to measure Property, Plant, and Equipment (PPE) if it expects the fair value of its PPE to significantly differ from its carrying amount. By using the revaluation model, the business can adjust the carrying amount of its PPE to reflect its fair value and report a more accurate valuation on its financial statements. This can provide a clearer picture of the business's financial position and potentially enhance its financial performance.


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You do not need any equipment in order to become a model. You are selling yourself as a product/commodity so there are no additional requirements or equipment needed.


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