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2 years ago

Which cost flow assumption generally results in the highest reported amount of net income in periods of rising inventory costs?.

1 answer:

4 0

FIFO is cost flow assumption that generally results in the highest reported amount of net income in periods of rising inventory costs.

<h3>What is First In, First Out?</h3>

First In, First Out, can be regarded as the is an asset-management techniques which is been used in analyzing assets.

With this techniques the asset that is usually disposed first are those that are first gotten, and this is usually done for the purpose of tax, and uses the assumption that there inclusion of old items in income statement.

learn more about FIFO at :brainly.com/question/24137318

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ABC Company sells three products, X, Y and Z. The weighted average contribution margin for all three products is $3.05 per unit.

bearhunter [10]

Answer:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Explanation:

Giving the following information:

The weighted average contribution margin for all three products is $3.05 per unit. ABC's total fixed costs are $35,000

<u>With the information provided, we can only calculate the break-even point in units for the whole company using the following formula:</u>

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 35,000/3.05

Break-even point (units)= 11,475

<u>Now, imagine the following sales mix:</u>

X= 0.25

Y=0.40

Z=0.35

<u>We can determine the number of units for each product:</u>

X= 11,475*0.25= 2,869

Y= 11,475*0.4= 4,590

Z= 11,475*0.35= 4,016

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4 years ago

In periods subsequent to an asset transfer from a subsidiary to its parent at a gain, what effects continue on the seller's and

Alik [6]

Answer:

a. retained earnings of the seller are overstated

Explanation:

An asset transfer from a subsidiary to its parent at a gain is an Intragroup transaction. Intragroup transactions must be eliminated otherwise the financial statements would be misleading and not have a faithful representation.

The consequence of this transfer is that the Income of the Seller (subsidiary) increases and this also increases the Retained Income Balance of for the Subsequent years. We should eliminate this Income.

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3 years ago

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TEA [102]

The answer to your question Roxannecalixto is decreases and produced.

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Explanation:

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