Share
Explore BrainMass

Depriciation in Manufacturing.

A: Which is a better measure of the economics of welding, the way welds are currently charged or Amy Miller's proposed method?
B: What assumption is Amy Miller building into her proposed method?
C: Would Amy Miller's proposal increase the company's income, or would it only decrease the stated cost per frame?

Assume that all welds are of the same length and depth, requiring the same amount of welding time each.

Attachments

Solution Preview

A: Which is a better measure of the economics of welding, the way welds are currently charged or Amy Miller's proposed method?

The better measure of economics of welding is the way welds are currently charged. Not by Amy's proposed methods. Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. Business expense on computer controlled robots is not dependent on the level of frames welded. These expenses have already been incurred and cannot be treated as variable costs. Supposing the computer controlled robots are not used for five years, their value will decline because of the passage of time. The ...

Solution Summary

The response provides you a structured explanation of how depreciation is applied to computer controlled robots. It also gives you the relevant references.

$2.19