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Temporary idle activity does not preclude depreciating the asset, as future economic benefits are consumed not only through usage but also through wear and tear and obsolescence.
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How should idle time wages be treated in cost accounts?
idle wage components
Should deprciation should be charged on idle assets?
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.
What type of cost should not be assigned to products in an activity-based costing system?
Organization-sustaining costs, customer-level costs, and the costs of idle capacity should not be assigned to products. These costs represent resources that are not consumed by the products.
What are the five basic principles of cash management?
The 5 basic principles of cash management include:1- Increase the speed of receivables collection; by lowering the average collection period for funds, you will have more money to use for operations or investing. Offering a discount for early payment is one method that can be used to speed up the payment process.2- Keep inventory levels low; maintaining the proper levels of inventory are crucial to maintaining your available cash levels. The cost of inventory and warehousing it is a huge expense; this is why right-on-time is a good way to go if it is feasible for your company. It is also important to consider the shelf life and the depreciation of your products. Most foods have a short shelf life, and items such as computers and computer related items have a fast depreciation rate. 3- Monitor the timing of payment of liabilities; you should take advantage of the full payment period, but do not pay them late, this could damage your credit rating.4- Plan timing of major expenditures; you should plan the timing of major expenditures; they should be made when you normally have excess cash which is typically during the slow season.5- Invest idle cash; leaving cash in your safe will earn you nothing. Letting large amounts of cash just sit without reinvesting it is not good money management.
How do activity-based costing and the traditional cost system treat idle capacity costs differently?
Traditional costing system allocates the idle capacity cost to completed units while activity based costing only allocates the cost of capacity which is utilized while remaining capacity is expensed to income statement as period cost.
What is an idle asset?
Idle asset is that asset which is not utilized in the fiscal year to earn revenue of business. Depreciation of idle asset is not charged for that specific period under which it remained idle.
What should you do if you have an empty truck idle?
Return the asset
What should you do if you have an empty truck sitting idle?
Return the asset
What are idle assets?
Idle assets are assets that are lying unused or that are not earning any income. Any asset that is unused or not appreciating in value can be considered an idle asset. For example when you place cash in your vault, it can be considered an idle asset. It is not being used for anything and nor is it increasing in value. If we had invested it somewhere or atleast deposited it in a bank, it would be earning interest and hence we could not term it idle. Now since it is just lying there in the vault it can be considered idle.
Can you capitalize storage on machinery?
If you're refering to a new asset that has not yet been placed into use, all costs incurred to bring a fixed asset into a condition for use should be capitalized as part of the asset's total cost. If you're refering to idle machinery that is no longer in use, then storage expenses should be expensed.
What are the risks regarding the handling of cash?
1. It will get stolen by employeesSave2. It will get stolen by others3. It will be misreported4. It will be an idle asset for too long.
How do you set the idle on a 1987 Chevy Celebrity?
The idle speed on a 1987 Chevy Celebrity is controlled by the engine computer, there is no way provided to adjust it.
What should a 300 6 cylinder idle at?
Idle should be between 500 to 750 RPM.
WHY DOES THE 1991 Mercedes Benz 500sl HAVE high idle?
How high is your idle? idle should be 800rpm good oil pressure is obtained at this idle
What is the Idle speed on a 2006 Heritage Softail Classic?
Do you mean the rpm's on the tach? The bike should not run down the road at idle. At idle, in gear it should jump forward and die. If not, the idle is too high.
How do you adjust the idle speed on a 2001 Subaru Forester and what should the idle speed be?
how to adjust idle on 2001 legacy
What should your dodge idle at?
Idle speeds can vary from 500 to 1200 rpm
