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2 years ago

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

1 answer:

7 0

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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A real estate office handles a 80-unit apartment complex. When the rent is $550 per month, all units are occupied. For each $25

lukranit [14]

Answer:

The real estate should charge $1,300 to obtain maximum profit.

Explanation:

We can make K to represent the number of unit apartment occupied.

This means that the total rent the real estate office is getting can be denoted by;

{(550 + 25(80 - K)} K - 50K

Maximizing the above equation, we have;

y = 550K + 2,000K - 25K^2 - 50K

Collect like terms

= 2,500K - 25K^2

y' = (2,500K - 25K^2)' = 2,500 - 50K

y = 0

2,500 - 50K = 0

2,500 = 50K

K= 50

Rent is therefore;

Rent = 550 + (80 - K)25, where K is 50

= 550 + (80 - 50)25

= 550 + (30)25

= 550 + 750

= $1,300

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3 years ago

Spark Company's static budget is based on a planned activity level of 60,000 units. At the same time the static budget was prepa

aksik [14]

Answer:

The management should compare the company's actual revenues and costs to a budget based on 64,000 units.

The correct answer is B

Explanation:

In performance evaluation, comparison should be done between the same level of activity. Since the actual level of activity is 64,000 units, the budget should be based on the same level of activity.

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3 years ago

Organizations that rely on a few major customers may organize their people and resources by client. This is an example of ______

Rom4ik [11]

Any organization that organizes their people and resources by client because it relies on a few major customers shows an example of <u>customer departmentalization</u>.

<h3>What is departmentalization? </h3>

Departmentalization is an effort by an organization to achieve some common purpose, coordinate its effort, ensure division of labor, hierarchy of authority, and centralize/decentralize and formalize its operations.

There are four basic types of departmentalization (function, product, customer, and geography). Customer departmentalization depends on the difference between the customer segments so that specialized services could be offered to each segment.

Thus, such an organization is an example of <u>customer departmentalization</u>.

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2 years ago

When it comes to investing, what is the typical relationship between risk and return?

bonufazy [111]

D i would think im not shure thoe

5 0

3 years ago

Read 2 more answers

n investor has $100,000 invested in an account that earns 5% annually. The investor wishes to withdraw $12,000 per year. If the

lawyer [7]

Answer:

11 years

Explanation:

For computing, the number of years or the account will be fully depleted we need to apply the NPER formula i.e to be shown in the attachment below:

Given that,

Present value = $100,000

Future value = $0

PMT = $12,000

Rate of interest = 5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years in which the account is depleted is 11 years

3 0

3 years 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?.