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Greasy Ltd Has a Mining Operation in Western Australia

question 41

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Greasy Ltd has a mining operation in Western Australia.It has reached the production stage with $10 million in costs carried forward.The company is leasing the mining rights to the area and at the beginning of this period the remaining term on the lease is 99 years.The expected production in tonnes from the area is 8 million.In the current period 500,000 tonnes were extracted.Revenues are expected to be highest in the early years of the mine's life and to decline at a rate of 15 per cent per annum.How much of the accumulated costs should be allocated to production this period (round to the nearest dollar) ?

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Definitions:

Perceiving Type

A psychological classification related to how individuals prefer to take in information, focusing on flexibility and adaptability.

Company Procedures

Established methods and guidelines set by a business for carrying out its operations and dealing with various situations.

Audience Benefits

Benefits or advantages that the audience gets by using the communicator’s services, buying the communicator’s products, following the communicator’s policies, or adopting the communicator’s ideas. Audience benefits can exist for policies and ideas as well as for goods and services.

Extrinsic Motivators

External incentives or rewards, such as money or grades, used to drive behavior or encourage action.

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