Extractor Ltd Has Carried Forward Costs of $16 Million Relating

question 1

Multiple Choice

Extractor Ltd has carried forward costs of $16 million relating to a gold mine in Western Australia.It owns the site and has completed the first year of production.The revenues from the year's sales are 12 per cent of the total expected revenues based on expected future sales and prices.Five thousand tonnes of gold-bearing deposits were mined during the period out of a total estimate of 70,000 tonnes of reserves.It is expected that it will take 20 years to fully deplete the existing reserves.How much of the carried-forward costs should be allocated to production this period (round to the nearest dollar) ?

• A) $1,142,857
• B) $800,000
• C) $1 920,000
• D) $685,714
• E) None of the given answers.

Understand the principles of ecological efficiency and its impact on ecosystem associations.

Distinguish between different mimicry types and their ecological significance.

Understand the concept of carrying capacity and factors affecting it.

Recognize different age structure categories and their significance.

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Definitions:

Static Budget

A static budget is a fixed budget created for a specific level of activity and does not change with the actual level of activity, often used for planning purposes.

Guest-Days

A metric used in the hospitality industry, calculating the total number of guests multiplied by the number of days they stayed.

Total Cost

the aggregate of all costs, both fixed and variable, incurred in producing goods or services.

Static Budget

A budget based on a fixed set of assumptions and not adjusted for actual activity levels.