The cost of acquiring an asset includes the costs necessary to bring it to the condition and location necessary for its intended use. there are four stages during which costs can be incurred related to fixed assets:

·         Preliminary stage,

·         Pre-acquisition stage,

·         Acquisition or construction stage (herein referred to as the construction stage),

·         In-service stage

Please, provide a summary of some types of costs incurred during all stages of construction or acquisition of a capital asset/project. Discuss what sort of costs can be capitalized during each of the stages.

Assume the following data represent the cost of a gallon of gasoline ($) at all the various gas stations around town on a given day. Take a random sample of size 5 from this population.

2.59 3.01 3.15 2.83 2.79 2.59 2.96 3.05 3.19 3.03 2.65 2.74 2.83 2.69 3.05 3.10 2.89 2.84 2.63 3.11 2.76 2.89 2.90 3.09 3.05 2.71 2.84 2.90 2.75 2.90 2.56 2.89 2.76 2.87 2.92 3.05 3.09 2.57 3.20 2.76

a) Describe the individual, variable, population and sample.

b) A description of the process you went through to actually collect the random sample.

c) The work showing the calculation of the mean and standard deviation by hand. (You may use a basic calculator for the arithmetic.)

d) A sentence explaining the meaning of the standard deviation in terms of the gasoline prices.

Charles Berkle is the manager of Nogain Manufacturing and is interested in doing a cost of quality analysis. The following cost and revenue data are available for the most recent year ended December 31.

a. Classify each of these costs into the four quality cost categories and prepare a cost of quality report for Nogain.

b. What percentage of sales revenue is being spent on prevention and appraisal activities?

c. What percentage of sales revenue is being spent on internal and external failure costs?

A machine was acquired on January 1, 2015, at a cost of $80,000. The machine was originally estimated to have a residual value of $5,000 and an estimated life of 5 years. The machine is expected to produce a total of 100,000 components during its life, as follows: 15,000 in 2015, 20,000 in 2016, 20,000 in 2017, 30,000 in 2018, and 15,000 in 2019.

Instructions
(a)   Calculate the amount of depreciation to be charged each year, using each of the following methods:
   1.   Straight-line method
   2.   Units-of-production
   3.   Double diminishing-balance
(b)   Which method results in the highest depreciation expense during the first two years? Over all five years?

1. Explain the effect of a property tax on the overall cost of buildings, and the effect of a land value tax on the rent and price of land.

Summarize the cost flow methoda used under each system.

According to some, one of the reasons for controlling the rising cost of care is that it makes American business less competitive internationally. This will be the topic of this week’s discussion question. First, discuss the notion that the market for labor is competitive, especially in healthcare. What happens when a firm or industry passes high labor costs to consumers? What happens if an industry is strongly unionized? List and discuss the possible adverse effects of rising medical cost on the US economy. After completing your research, do you feel that the rising costs of care makes US businesses less competitive internationally?

Provide cost analysis and decide on the cheapest design concept of a bridge.