Description
- Part 1 :Suppose you have been working with the federal government for a period of time, and you decide to form a small company. Explain the difference between depreciation and the facilities capital cost of money. Specify the key advantages of having facilities capital cost of money as an allowable cost. Justify your response
Part 2:
- Determine two to three (2-3) possible factors that could make facilities capital costs of money unallowable based on the information presented in Chapter 9. Present two to three (2-3) examples of instances where companies have made facility capital costs of money available.
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Explanation & Answer
Attached.
Depreciation Cost and Facility Capital Cost
To begin with, it is evident and true that a facility capital cost is money which is based on
allowable cost, and it is mostly legally charged on various government contracts (Small Business
Program, 2016). On the other hand, the depreciation cost is the value of an asset net including the
cost of capital in the government spending and other accounting aggressiveness (Small Business
Program, 2016). Considering the depreciation cost should cover the capital assets, the cash flows
as well as asset evaluation procedures (Depreciation Cost, 2016).
Considering the depreciation value and cost can promote the expected value of the firm
(Depreciation Cost, 2016). It is also true that...
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