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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:

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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The Wheeler-Lea amendment made unfair or deceptive acts or practices in commerce illegal under Section 5 of the Federal Trade Commission Act.

<h3>What was Federal Trade Commission Act?</h3>

The Federal Trade Commission was founded by the Federal Trade Commission Act of 1914, federal legislation of the United States. The Act, which was passed by US President Woodrow Wilson in 1914, forbids unfair business practices and unfair techniques of competition.

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2 years ago

Your uncle Ben has applied for a loan of $240,000 from a local bank, and he thinks he will get a loan. However, he is not confid

vlada-n [284]

Answer:

Follows are the responses to these question:

Explanation:

Please find the complete question in the attached file.

Uncle Ben will have to select industrial machinery for customized furnishings, as the NPV of the project have result show to the S loan, such that uncle Ben can gain it if he opts to invest throughout the C loan of just $120,000 from the bank.

In Which only a $240,000 credit by Uncle Ben has also been issued by the bank, it can choose either local furniture exaggerations or regular fabric as Project C and Project S both are positively Verdict.

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3 years ago

Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inf

KATRIN_1 [288]

Answer:

C) COLA plus 2.4%

Explanation:

COLA stands for cost of living increase. It refers to the amount that Social Security benefits increase according to inflation rate. This way the Social Security payments should not lose purchasing power against rising inflation, because if inflation rises, the COLA will also increase.

In this case, Nancy's union negotiated an agreement by which the union members' salaries would be 2.4% higher than COLA increases, so they will be 2.4% higher than inflation rate.

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3 years ago

A bond with a coupon rate of 5.16 percent and semiannual coupon payments matures in 12 years. The YTM is 6.37 percent. What is t

Karo-lina-s [1.5K]

Answer:

6.47%

Explanation:

The computation of effective annual yield is shown below:-

Annual YTM = 6.37%

Semiannual YTM = 6.37% ÷ 2

= 3.185%

Effective Annual Yield = (1 + Semiannual YTM)^2 - 1

= (1 + 0.03185)^2 - 1

= 1.03185^2 - 1

= 1.0647 - 1

= 0.0647

= 6.47%

Hence, the effective annual yield is 6.47% i.e come after applying the above formula

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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?.