-The Above Table Shows Production Points on Sweet-Tooth Land?s Production

question 46

Multiple Choice

$$\begin{array} { | l | l | l | } \hline \text { Point } & \begin{array} { l } \text { Production } \\\text { chocolate } \\\text { bars }\end{array} & \begin{array} { l } \text { Production } \\\text { cans of cola }\end{array} \\\hline \text { A } & 0 & 100 \\\hline \text { B } & 10 & 90 \\\hline \text { C } & 20 & 70 \\\hline \text { D } & 30 & 40 \\\hline \text { E } & 40 & 0 \\\hline\end{array}$$
-The above table shows production points on Sweet-Tooth Land?s production possibilities frontier. Which of the following is an example of a point that is inefficient?

• A) 20 chocolate bars and 80 cans of cola
• B) 38 chocolate bars and 0 cans of cola
• C) 0 chocolate bars and 100 cans of cola
• D) 32 chocolate bars and 40 cans of cola

Differentiate between ordinary maintenance, asset improvements, and extraordinary repairs.

Comprehend the treatment of disposal entries for fully depreciated assets.

Analyze transactions involving the exchange of machinery with different book values.

Calculate depreciation using the double-declining balance method.

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Definitions:

Capital Cost

The upfront expenditure required to acquire or improve fixed assets such as buildings, machinery, or equipment, contributing to the productive capacity of a firm.

Hurdle Rate

The minimum rate of return on an investment that a business requires before it will proceed with the project.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.

Fixed Order Interval

A replenishment method where orders are placed at fixed intervals, ensuring a periodic review and stock refill.