Explain the difference between value analysis and value engineering
What will be an ideal response?
Value engineering is concerned with reducing cost and improving function in a preproduction setting, while value analysis, with similar aims, takes place during production, when the product has shown that it will succeed. Techniques are similar.
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When a company recognizes the portion of supplies used during a year, the effect is to decrease net income
a. True b. False Indicate whether the statement is true or false
Laverne exchanges a rental beach house with an adjusted basis of $400,000 and fair market value of $320,000 for a mini-storage building with a fair market value of $200,000 plus $120,000 cash. What is the recognized gain or loss on the exchange and the basis of the mini-storage building?
What will be an ideal response?
An earthquake destroyed the home office building of a company located in an inland city. This should be reported as a(n)
a. extraordinary loss. b. prior period adjustment. c. loss from continuing operations. d. loss from discontinued operations.
Land improvements are:
A. Also called basket purchases. B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation. C. Included in the cost of the land account. D. Assets that increase the usefulness of land, and like land, are not depreciated. E. Expensed in the period incurred.