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Bess [88]
1 year ago
5

At a time of declining prices, which cost flow method will result in the highest ending inventory?

Business
1 answer:
Alex1 year ago
6 0

At a time of declining prices, the cost flow method that will result in the highest ending inventory is LIFO.

If the costs are declining, it was the brand new stock purchase shall be at a decreased price and the oldest purchase shall be at a better fee. In the LIFO methods finishing stock is assumed from the oldest purchases, hence the LIFO assumption will result in the best ending inventory.  

In a period of declining prices, LIFO will bring about the bottom value of products bought (maximum latest purchases) and the best ending stock (earliest purchases).

Last In First Out (LIFO) is a way used to account for stock. Under LIFO, the charges of the maximum latest merchandise purchased (or produced) are the primary ones to be expensed. For the duration of instances of rising charges, agencies may additionally find it beneficial to use LIFO price accounting over FIFO. below LIFO, firms can keep on taxes in addition to better fitting their revenue to their contemporary fees whilst charges are rising.

Learn more about LIFO here brainly.com/question/25887081

#SPJ4

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Explanation:

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answerd by Hami Radcliffe

7 0
3 years ago
Offering material inducements to gain international cooperation is an example of:
Nadya [2.5K]
<h3>♫ - - - - - - - - - - - - - - - ~Hello There!~ - - - - - - - - - - - - - - - ♫</h3>

➷ It is an example of 'hard power'

<h3><u>✽</u></h3>

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5 0
4 years ago
Which theory would most likely explain why a commercial bank, which usually focuses on short-term securities, would switch to lo
den301095 [7]

Answer:

preferred habitat

Explanation:

According to the preferred habitat theory, if the expected returns from investment of a particular investment maturity is large enough, investors would shift from their preferred maturities.

In this question, there is a shift from the preferred maturity (short-term securities) to a long-term securities when interest rate changes

The pure expectations theory assumes that bonds of any maturity are perfect substitutes for each other. For example, if an investor buys a 10 year bond and holds it for 1 year, the return is the same as buying a 1 year bond. The theory also assumes that risk premium does not exist and a security only earns its risk free rate

Liquidity premium theory states that risk premium increases with the maturity of a bond. The theory predicts that the yield curve is upward sloping due to liquidity premium

According to the segmented market theory, each bond maturity segment can be thought of as a segment market in which yield are a function of the demand and supply for funds in that maturity.

5 0
3 years ago
What statement below best defines "exporting pollution"? When a country decreases its exports, resulting in a lower level of dom
tamaranim1 [39]

Answer:

"Exporting pollution" occurs when a country reduces its domestic pollution, but increases imports that cause pollution in other countries.

Explanation:

Exporting pollution is a commercial and environmental process through which the most developed countries send their most polluting companies to produce their goods to underdeveloped countries. These companies, generally industrial, transfer their production of carbon dioxide and other polluting gases to these countries, which receive large employers and economic benefits but in turn accept higher rates of contamination in their territories.

4 0
4 years ago
NDP Mp will be equal to:
Ivanshal [37]

Answer:

B) NDPFC + Indirect Taxes

Explanation:

Net domestic product (NDP) is obtained by subtracting depreciation from gross domestic product (GDP), and it can be calculated at market price (NDPmp) or at factor cost (NDPfc):

  • NDPmp = GDPmp – depreciation
  • NDPfc = GDPmp – depreciation – indirect taxes

If we substitute NDPfc into option B, we will get:

NDPmp = NDPfc + indirect taxes

NDPmp = (GDPmp - depreciation - indirect taxes) + indirect taxes

NDPmp = GDPmp - depreciation

6 0
4 years ago
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