CEE 4303 Lecture Notes - Lecture 21: Purchase Order, Macrs, 0 (Year)
Document Summary
Lecture 21 chapter 4 & 5 importance/discussion. Committed costs are those costs that the company has committed to pay. This occurs when the company issues a purchase order or signs a subcontract for a known amount. The two example of committed cost: subcontracts, purchase orders with costs. Labor seldom is a committed cost because the cost associated with it is bound on the company and the company is supposed to pay these cost in future. The cost is incurred by a company for a specialized task performed by a specialized labor. It takes six years to depreciate a piece of equipment with a five-year recovery period using. This happens if during the first year, the asset is put to use the maximum depreciation with allowable of 0. 875 and the remaining 0. 125 is part of depreciation claimed in the sixth year. Equations used: (cid:1)(cid:2)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:4)(cid:13)(cid:12)(cid:14)(cid:2)(cid:6)(cid:10)(cid:4)(cid:13)(cid:8) = (cid:16)(cid:14). (cid:14)(cid:18)(cid:6)(cid:19)(cid:8)(cid:4)(cid:10)(cid:20)(cid:6)(cid:5)(cid:8)(cid:18)(cid:13)(cid:6)(cid:12)(cid:2)(cid:6)(cid:10)(cid:8)(cid:11)(cid:14)(cid:21)(cid:8)(cid:10)(cid:19)(cid:6)(cid:9)(cid:8)(cid:10)(cid:12)(cid:14)(cid:7) (cid:22)(cid:3)(cid:23)(cid:6)(cid:14)(cid:18)(cid:6)(cid:19)(cid:8)(cid:4)(cid:10)(cid:20)(cid:6)(cid:12)(cid:2)(cid:6)(cid:10)(cid:8)(cid:11)(cid:14)(cid:21)(cid:8)(cid:10)(cid:19)(cid:6)(cid:9)(cid:8)(cid:10)(cid:12)(cid:14)(cid:7) (cid:1)(cid:2)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:7)(cid:8)(cid:9)(cid:10)(cid:8)(cid:11)(cid:12)(cid:4)(cid:13)(cid:12)(cid:14)(cid:2)