StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Claires Antique Assets - Case Study Example

Cite this document
Summary
In the essay “Claire’s Antique Assets” the author analyzes the types of fixed cost that Claire’s antique would incur. They are the Depreciation expense, maintenance and repairs, Amortization, Insurance, and Taxes. These are some of the major fixed costs that will incur while using these antique assets…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
Claires Antique Assets
Read Text Preview

Extract of sample "Claires Antique Assets"

Insurance and Taxes: Whether they are new or Antique assets every asset has to be taxed and if we are using these assets, for example, the antique car we are using we have to pay the insurance on that so that is also considered as a fixed cost which will probably incur. Taxes on antique items are a little bit lower as compared to new assets and the charges of insurance that are the Interest rate will probably be lower but the chances of running that asset are lower because the risk is high and it can lead towards ineffective productivity.

(Meigs & Meigs, 1997)In my opinion, it is not a good idea to uses Claire's assets to convert our fixed cost into the variable cost as there are many fixed costs that are not convertible very easily in Claire's antique assets. The reason for not following this strategy is that no business can run without having a certain amount of fixed cost and there are many costs in those assets that can increase our expenses. The other thing about not using these Antiques is that they involve a high-risk level which can ultimately affect our effectiveness and efficiency so therefore the use of these assets can be high risk.

Using these assets might be useful in the short term but it cannot be favorable in the long term and if it could be convertible into variable cost then ultimately our cost of production will increase and our cost per unit will eventually go high. (Hermanson & Edwards, 1992)This can be a good idea when we use these assets after their completion of their terms or after we depreciate our assets as according to their expected life when the salvage becomes zero or the expected life will become to an end by which we depreciated our assets.

After that we will not be charged taxes and insurance on our assets and that would be the best time to use the assets or consider them as a variable cost. As a smart manager, I will always try to make my company's assets most products which can lead to effective results and higher profits and that's why I used this technique to make our profits go higher and higher. (Warren, et al., 2001)

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Claires Antique Assets Case Study Example | Topics and Well Written Essays - 500 words, n.d.)
Claires Antique Assets Case Study Example | Topics and Well Written Essays - 500 words. https://studentshare.org/business/1501770-fixed-costs-depreciation-expenses-maintenance-and-repairs-amortization-insurance-and-taxes
(Claires Antique Assets Case Study Example | Topics and Well Written Essays - 500 Words)
Claires Antique Assets Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/business/1501770-fixed-costs-depreciation-expenses-maintenance-and-repairs-amortization-insurance-and-taxes.
“Claires Antique Assets Case Study Example | Topics and Well Written Essays - 500 Words”. https://studentshare.org/business/1501770-fixed-costs-depreciation-expenses-maintenance-and-repairs-amortization-insurance-and-taxes.
  • Cited: 0 times

CHECK THESE SAMPLES OF Claires Antique Assets

FOUR BASIC FINANCIAL STATEMENTS

It reflects both long- and short-term assets and liabilities of the company at a given point in time.... assets, liabilities, and equity or net assets describe levels or amounts of resources or claims to or interests in resources at a moment of time.... he two types of elements are related in such a way that (a) assets, liabilities, and equity (net assets) are changed by the elements of the other type and at any time are their cumulative result and (b) an increase or decrease in an asset cannot occur without a corresponding decrease or increase in another asset or a corresponding increase or decrease in a liability or equity....
3 Pages (750 words) Essay

Characteristics of Intangible Assets

The author of this research proposal entitled "Characteristics of Intangible assets" comments on the changes which have been taking place since 1978, in the global economy as well as financial systems and have been unique as well as gradual in nature.... A major offshoot was that intangible assets grew in gross disproportion to tangible assets.... Still, despite growing 'suspect' irregularities in the accounting of intangible assets that emerged from time to time, the world did not place proper regulations in place; one of these missing regulations included presenting clear and proper information of all intangible assets in the balance sheet....
8 Pages (2000 words) Research Proposal

Critically assess the attractions of commodities as an asset class over the short and long-term

It provides return and risk opportunities beyond that of simple inflation hedging and has sources of risk and return that are significantly different from and independent of traditional assets such as stocks and bonds.... Cotton, Copper) or agricultural grain or livestock product or by-product (e....
5 Pages (1250 words) Essay

The Capital Asset Pricing Model

While systematic risk affects every asset of a portfolio (as the market moves, each individual asset is more or less affected), specific risks are unique to individual assets (it represents the component of an assets return which is uncorrelated with general market moves) and thus can be diversified in the context of a whole portfolio.... In other words, the expected rate of return of a portfolio depends not on specific risks of assets, but on the systematic risk of a portfolio....
9 Pages (2250 words) Essay

Capital Market and Investment Banking Process Paper

Selection of assets is the decision by a fund manager regarding the specific assets to invest in.... Most are the times that people have associated this with Wall Street, but there are also others who consider this as referring more particularly to… In this line, an investment banker therefore is fundamentally any intermediary in the process of investment banking. Investment bankers come in the situation where, for example; one has an idea of and is seeking to set up a business but lacks You cannot as well borrow from friends or family members and to make matters even worse back loans are inaccessible....
4 Pages (1000 words) Research Paper

Speculative Investor Behaviour in a Stock Market with Heterogeneous Expectations

According to recent evidences and statistics on financial engineering and financial management perspective, the research carried out by J.... .... arrison and D.... .... reps aims at investigating the investors behavior on a broader basis, together with an accurate analysis of the major… Feiger (1976) and Hirshleifer (1975) for what concerns the characterization of speculative behaviors and partial equilibrium frameworks in this sense, in order to explain all the cases in which the market momentum allows to pay In the second work, more precisely, a detailed and accurate analysis on the major factors that are taken into account when partial equilibrium take place, market transparency has been found to be a positive and statistically significant variable for the research....
9 Pages (2250 words) Book Report/Review

Her Majesty's Revenue and Customs Framework

Generally, Great Britain and Hodge (2014) explains that the HMRC considers an organization or a company ‘active' for purposes of Corporation Taxes when it starts carrying on a business activity, receives income or is trading.... On the other hand, the HMRC may consider an… Moreover, HMRC may also deem an unincorporated organisation as trading or active in which case it is supposed to comply with some corporation taxes....
9 Pages (2250 words) Essay

Fixed Asset Valuation

The author concludes that fixed assets are important in the presentation of financial reports of a limited company because of the fact that they represent a significant portion of the total assets.... Valuation of fixed assets is regarded as a challenge hence should it be done by qualified personnel.... nbsp;    … This approach is only used if the company uses fixed assets to produce income....
11 Pages (2750 words) Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us