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1 year ago

When merchandise sold is assumed to be in the order in which the purchases were made, the company is using.

1 answer:

4 0

The company is using the FIFO method. To ensure correct inventory records, one of the foremost common strategies is first in first out (first-in, first-out), which assumes the oldest inventory was sold 1st and therefore the worth is calculated consequently.

The first in first out methodology is employed for price flow assumption functions. In producing, as things achieve later development stages and as finished inventory things area unit sold, the associated prices therewith product should be recognized as an expense.

The batch process, first in first out in its strictest sense is tough to take care of in instruction execution. If you're moving or processing your elements in boxes or batches, then it'll be tough to take care of a first in first out among box.

To learn more about FIFO Method, visit here

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At the prepurchase stage of the consumer purchase decision process:

olga2289 [7]

Answer:

The correct answer is letter "B": advertising is more effective than personal selling.

Explanation:

The purchase process could be classified in three stages: prepurchase stage, purchase stage, and postpurchase stage. In the prepurchase stage, consumers can use marketing as a source to find out the product or service they are looking for exists. Individual selling might not be as effective since clients without do not have much information at this stage about the brand, where to locate the product and its main features.

3 0

3 years ago

Your uncle offers you a choice of $115,0 in 10 years or $52,000 today, if the money is discounted at 9%, which should you do ose

Zarrin [17]

Answer:

1) we would choose the second offer i.e. $52,000 today

2) For A) 10 years at 10%

Future value = $151,405.53

For B) 15 years at 9%

Future value = $278,928.70

Explanation:

1) Future value = $115,000

Time, n = 10 years

Discount rate, r = 9% = 0.09

Now,

Present value of the money provided after 10 years

= Future Value ÷ [ ( 1 + r )ⁿ ]

= $115,000 ÷ [ ( 1 + 0.09 )¹⁰ ]

= $48,577.24

Since,

The Present value of $115,000 is less than the money to offered today i.e $52,000

Hence, we would choose the second offer i.e. $52,000 today

2) Payment per period = $9,500

Future value = Yearly Payment × [ { ( 1 + r ) ⁿ - 1 } ÷ r ]

Thus,

For A) 10 years at 10%

Future value = $9,500 × [ { ( 1 + 0.1 )¹⁰ - 1 } ÷ 0.1 ]

= $151,405.53

For B) 15 years at 9%

Future value = $9,500 × [ { ( 1 + 0.09 )¹⁵ - 1 } ÷ 0.09 ]

= $278,928.70

4 0

2 years ago

The Break-Even Point in your business is when

nydimaria [60]

Answer: In this letter you want to make sure that you are being clear and concise, so as to avoid any confusion about what your relationship will be in the future (ended). This means that you want to avoid any potential legal liability, and explain yourself in order to show that you are being fair and reasonable in your request.

Explanation:

5 0

3 years ago

A stock has an expected return of 12.2 percent, the risk-free rate is 6 percent, and the market risk premium is 10 percent. What

matrenka [14]

Answer:

Beta = 0.62

Explanation:

The capital pricing model establishes the relationship between expected return from a stock and its systematic risk . The systematic risk is that which affects all players (businesses and firms) in the entire market, such risks are occassioned by changes in interest rate, exchange rate e.t.c

According to the model , the expected return is computed as follows

E(r) = Rf + β(Rm-Rf)

Rf- risk -free rate, Rm-Rf - market premium

E(r) = 12.2%, Rm-Rf = 10, β- ?

12.2 = 6% + β× 10

10β = 12.2 -6

β= (12.2-6)/10

= 0.62

3 0

2 years ago

Concepts for Analysis 24-3 (Essay) Presented below are three independent situations.

Helga [31]

Answer:1. Make provision for warranty claims.

2. Disclosure of contingent liability

3. No cost should be recorded.

Explanation:

Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.

Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.

The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.

6 0

2 years ago