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When a firm chooses to buy a new fixed assets it is making a decision?
Wiki User
∙ 11y ago
capital budgeting
Wiki User
∙ 11y ago
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What are the advantages and disadvantages of fixed assets?
One of the advantages of fixed assets are that over the period of the fixed asset, the total burden of depreciation and repair costs are disproportional over the effective life of the asset. One of the disadvantages is that the depreciation is not a suitable method for assets like plants and machinery as depreciation is constant while the repairs on such assets will be heavier in later years.
What is fixed and working capital?
Fixed capital is something that is need for long term ...working capital is the capital or funds for managing and carrying out day to day operations. Apart from this a important point to note is that usually fixed assets or long term assets of the company are bought from fixed capital. Buying short term current assets from funds for long term would be illogical.
Can an annual revenue of 2 301 288.50 cover fixed cost if fixed cost represents 50 percent and variable cost represents 50 and rent represents 30 percent of fixed costs?
that'll depend on how much is your total cost. A good decision making tool that can help you here would be break even analysis. Formula = Fixed cost / Contribution per unit.
What is the d ifference between Fictitious assets and Intangible Asset?
Intangible assets are basically fixed assets that have no physical status (e.g. goodwill, patentright,copyright etc) . The Intangible assets are written off after a specified period. Fictitious assets also have no physical existence but they only include the assets having the nature of deffered revenue expenditures (e.g. deffered advertisement expenses, discount on issue of shares or debentures).
What is intermediate consumption?
Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose consumption is recorded as consumption of fixed capital.
Is gross block current assets or fixed assets?
fixed assets
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
What are maturity of fixed assets?
maturity of fixed assets means the completion of useful life of fixed assets.
Fixed assets to current asset ratio?
fixed assets / current assets
Are fixed assets a liability?
Fixed assets are not liabilities, they are assets that can not be quickly liquidated (turned into cash). If the company goes under, fixed assets would be difficult assets to get cash for.
Fixed deposit is current asset or fixed asset?
Fixed deposit is under fixed assets. Under fixed assets, there are 3 category that is tangible fixed assets (land, machinery, dll), intagible fixed assets (pattern, franchise, dll) and investment (fixed deposite,dll).
Explain - fixed assets?
fixed assets are long term assets which have long term period
What costs can you include in a new fixed asset?
Fixed assets are also tangible assets with the following characteristics: (1) for the production of goods, provide services, for rental or administrative purposes; (2) to a term of over one year; (3) high unit price. Classified by economic use of fixed assets, fixed assets can be divided into production and business class business class of all fixed assets of .1 non-production, production and operation class of fixed assets, is the direct service of production, business process various types of fixed assets. Such as the production and management with houses, buildings, machinery, equipment, utensils, tools. 2, non-production business with the fixed assets is not directly serving production and business processes of various fixed assets. Such as dormitories, dining hall, bathrooms, hairdressing room and so the use of housing, equipment and other fixed assets, etc.. Hug the use classification of fixed assets can be divided into fixed assets in use, no use of fixed assets and fixed assets not required. Classification of the ownership of fixed assets can be divided into fixed assets owned fixed assets and rental income. Leased fixed assets are divided into operating lease of fixed assets and fixed assets financed by leasing. The economic use of fixed assets and use of comprehensive classification: 1, production and operation of fixed assets. 2, with fixed assets of non-production operations. 3, leased fixed assets. Means the lease under operating lease of fixed assets to other units. 4, No need for fixed assets. 5, no use of fixed assets. 6, the land. That in the past has accounted for the land alone. Paid for land acquisition compensation fee, should be included in land-related housing, the value of the building, 7, fixed assets financed by leasing. Details of fixed assets subject to classification according to the set, also can directly write the name of the specific device. The use of accounting software have now fixed detailed title. Subjects use a lot, as long as the related fixed assets accounting are required.
Is livestock PART OF fixed assetS?
Yes livestock are fixed assets
Should Fire Extinguishers be treated as Fixed Assets?
fixed assets
What does total assets less net fixed assets equal?
Total assets less net fixed assets equals
What are some examples of fixed capital?
fixed assets are assets that are use in the purchasing of fixed assets example: buildings, land , equipment etc
