Loading the lesson
Loading the lesson
Search AllRounder.ai
Search the courses, subjects, tracks, games and features, or jump straight to a page.
Search the courses, subjects, tracks, games and features, or jump straight to a page.
3 cards from this section. Quick, good the night before a test.
What is the formula to calculate annual profit?
Think about what subtracting costs from revenue represents.
Define Cumulative Profit.
Consider how profits from multiple years add up.
What does the Maximum Profit Method focus on?
Think about what the method's name implies regarding profits.
True or False: The economic life of machinery is defined as the period of maximum cumulative profit.
Consider whether the definition aligns with how we’ve discussed economic life.
A machine generates the following annual profits over six years: 10 lakh, 12 lakh, 15 lakh, 14 lakh, 8 lakh, and 5 lakh. Calculate the average annual cumulative profit over these years.
Remember to divide total cumulative profits by the total number of years.
If the current machine has a decreasing estimated profit from 20 lakh to 18 lakh in the second year while the proposed new machine shows a steady profit of 22 lakh, should the current machine be replaced?
Compare current estimated profits against those of the proposed machine.
5 more questions in this section. Enroll free to practise them all.
Enroll free