An appraiser would define depreciation as:
A: Recapture that has been realized;
B: Loss in value from any cause;
C: Wear and tear of the improvements;
D: A loss in the value of the land.
Answer: B: Loss in value from any cause;
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Venlite, Inc produces and sells cosmetic products
Currently, the company is operating at 70% of its capacity. The sales price of its product is $30 per unit, and it incurs a full cost of $25 to produce each unit. Its yearly fixed manufacturing overhead amounts to $20,000. The company has received a one-time order for supplying 5,000 units at $26 per unit. This order can be executed within the excess production capacity and will not involve any additional costs. To make this decision, the management of Venlite should use ________. A) absorption costing as the decision is long-term in nature B) variable costing as the decision is short-term in nature C) absorption costing as the decision is short-term in nature D) variable costing as the decision is long-term in nature
Recognition and encouragement should be provided when _________________________
a. there is a problem b. standards have been met c. standards are revised d. brainwriting