The units of production method of depreciation (which is also referred to as the units of activity method) assumes that an asset's useful life is more related to its usage rather than the mere passage of time
The DB function uses a fixed rate to calculate the depreciation values. In some cases, the salvage is difficult to reach using the DDB function. The VDB function performs the same calculations as the DDB function but switches to a straight line to reach the salvage value.4For the straight-l...
Compute your annual compound interest rate. You will need to take your interest rate and convert it into a decimal or percentage that can be added to 1 (100%). You can use the excel formula for this. Add your annual compound interest rate to 1. This is the number you are multiplying ...
How to compute the predetermined overhead rate? Explain the difference between a ratio and a proportion without using numerical examples. Do the ratios 6 : 3 and 4 : 2 form a proportion? Do the ratios 17 : 3 and 5 : 1 form a proportion?
Determine the Overhead Rate Once you’ve estimated the manufacturing overhead costs for a month, you need to determine the manufacturing overhead rate. This is the percentage that you must pay for overheads every month. To compute the overhead rate, divide your monthly overhead costs by your...
How to compute/create a tangent portfolio? Answer and Explanation: A tangent portfolio is one that that obtains the highest possible sharp ratio, which gives it the best relative performance in terms of risk. The way... Learn more about this topic: ...
Now Mr. Hari Lal Ltd. knows that their dolls' cost must include Rs. 85,200 every month. Mr. Hari Lal Ltd. must compute the average fixed cost to establish the appropriate pricing per doll. Calculate Fixed and Variable Costs How Do You Calculate Fixed Costs Per Unit?
C10= Depreciation D9-C10= Asset Value in Period 1 If we drag down the fill handle, as shown in the image below, the asset value for the remaining cells will be obtained. Method 5 – Using SYD Function Steps: Input the following formula to compute depreciation in cell C9.: =SYD($...
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Definition of Actual or Real Interest Rate on a Bond Investment The actual or real interest rate on a bond payable is also known as effective interest rate, yield to maturity, yield, and market interest rate. This rate can be calculated by discounting the bond’s future cash amounts (...