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1 year ago

Which inventory costing method results in the lowest net income during a period of rising inventory costs?.

1 answer:

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Due to the greatest cost of goods sold, the LIFO (Last In Last Out) technique displays the lowest net profitability. Compared to the other techniques of inventory valuation, the cost of goods sold for the LIFO approach is the greatest.

<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>

The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.

<h3>Which method of inventory has the lowest income tax rate?</h3>

LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.

<h3>In an era of inflation, which inventory method results in the lowest income tax?</h3>

Due to increasing COGS, LIFO leads to reduced net income (and taxes). However, under LIFO during inflation, there are fewer inventory write-downs. Results from average cost are in the middle of FIFO and LIFO.

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Which of the following illustrates the law of demand? a. Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteri

iVinArrow [24]

Answer:

e. a and c

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. This occurs because of the law of diminishing marginal utility.

The law of diminishing marginal utility states that the more of a commodity is consumed, the lower the utility derived from the consumption of the product.

It follows that Jorge and karissa would demand less of pencils and sweaters as their prices rise.

The demand curve is usually downward sloping to illustrate the law of demand.

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3 years ago

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos

bezimeni [28]

Answer:

The amount of overhead debited to Work in Process Inventory should be: a. $182,00

Explanation:

The Overheads are Applied in the Manufacturing Costs as:

Budgeted Rate × Actual Activity for the Month

At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)

In our Case, the predetermined overhead rate is 70% of direct labor cost

<em>Thus we need to find the Direct Labor Cost first</em>:

Total Labor Costs $360,000

<em>Less </em>Indirect Labor Costs<em> </em>$100,000

Direct Labor Cost $260,000

<em>Therefore Overheads applied would be determined as:</em>

= $260,000 × 70%

= $182,000

6 0

3 years ago

Read 2 more answers

Selling, general, and administrative expenses were $59,000; net sales were $268,100; interest expense was $6,300; research and d

ozzi

Answer:

$35,800

Explanation:

Gross Profit = Net sales - Cost of goods sold

= $268,100 - $145,500

= $122,600

Total Operating Expense:

= S, G & A Expenses + R&D expense

= $59,000 + $27,800

= $86,800

Operating Income = Gross Profit - Total Operating Expense

= $122,600 - $86,800

= $35,800

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3 years ago

Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each depa

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Solution:

S1 $180,000 is allocated 70% to S2 or $126,000 ( 0.7 * 180,000 )

S2 total is $162,000 + $126,000 = $288,000

S2 $126,000 is allocated 19.7% to P2 or $81000

Under the step-method of cost allocation,

the amount of costs allocated from $2 to P2 would be $81000

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3 years ago

when a person uses face-to-face presentations to promote goods and services, he is said to be using as a sales technique.

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Personal selling is the face-to-face presentation and promotion of products and services.

<h3>What is personal selling?</h3>

Personal selling, commonly referred to as face-to-face selling, is a sales technique where a single salesperson tries to persuade a consumer to purchase a product. It is a type of advertising where the salesperson employs their knowledge and talents in an effort to close a deal.

<h3>What do you mean by sales technique?</h3>

A sales technique is a strategy of selling used by a company's sales team or a salesperson to close more deals and make more money. It's a tactic to improve a company's sales procedure. A sales methodology is adaptable and open to change once its efficacy has been tested through trials.

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6 0

1 year ago

Which inventory costing method results in the lowest net income during a period of rising inventory​ costs?.

Which inventory costing method results in the lowest net income during a period of rising inventory costs?.