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1 year ago

Which factors may influence a company's choice of inventory cost flow assumption?

1 answer:

7 0

inventory cost flow assumption influence by tax implications of choice ,financial statement effect, actual physical flow of inventory.

The way or channel that costs move through a company is referred to as the flow of costs. The flow of costs typically pertains to manufacturing businesses where accountants are required to quantify expenses associated with raw materials, work in progress, finished goods inventory, and cost of goods sold.

Four commonly acknowledged methods—specific cost, average cost, first-in, first-out (FIFO), and last-in, first-out—are available for allocating expenses to ending inventory and cost of goods sold (LIFO).

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Gordon Chemicals Company acquires a delivery truck at a cost of $39,700 on January 1, 2017. The truck is expected to have a salv

Kipish [7]

Answer:

First Year depreciation is $18,750

Second Year depreciation is $ 9,375

Explanation:

Note that the Method used to provide for Depreciation is Declining Balance Method.

The established rate is used to compute depreciation on the remaining balance after taking account of previous depreciation charges.

<u>Which is the appropriate rate to use?</u>

The question gave us an assumption, "Assuming the declining-balance depreciation rate is double the straight-line rate"

<u>So Working with this Assumption the Calculations are as follows</u>

Straight Line Rate = 1/4×100 = 25%

Therefore Declining Balance Rate = 2×25%=50%

First Year depreciation is = Depreciable Amount ×Diminishing Rate

=($39,700-$2,200) ×50%

= $18,750

Second Year depreciation is = Carrying Amount × Diminishing Rate

=(($39,700-$2,200) - $18,750)×50%

= $ 9,375

Terms:

(1) Depreciable Amount is Cost less Salvage Value

(2)Carrying Amount is Cost less Accumulated depreciation to date

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3 years ago

Hector is philosophically opposed to unions. "Why should I be required to join an organization I don't agree with, or pay a fee

AnnyKZ [126]

Answer:

Open

Explanation:

Open shop arrangement is the term which is defined or described as the office, factory or other kind of business establishment in which the union, which is selected or elected through a majority of the employees, that later act as the representative of all the employees while making the agreements with the employer.

So, in this case, the Hector is against the or opposed ton unions. Therefore, the comments of the Hector states that he is in favor of an open shop arrangement.

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3 years ago

Greensaver Corp. is a company that sells electricity. Greensaver has taken the initiative to generate more power from solar and

UNO [17]

Answer:

c.Corporate social responsibility (CSR)

Explanation:

Based on the information provided within the question it can be said that Greensaver Corp's efforts are best described as Corporate social responsibility. This refers to the act of a company' charitable nature to contribute to societal goals. Which is exactly what Greensaver Corp is doing by installing saplings in parks and roadsides in order to combat pollution of nonrenewable resources for the good of the planet and society.

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3 years ago

Hich best explains how the law of demand affects consumers?

Anuta_ua [19.1K]

Answer:

It helps consumers tell producers when prices are too high.

Explanation:

The law of demand affirms that an increase in price results in reduced demand. It means that when prices increase, consumers will buy fewer quantities of a product or service. The law of demand shows the relationship between price and the quantity of a product consumers are willing to buy in the market.

Consumers can communicate with producers through the volume of products purchased. When the quantity purchased is low, producers will know the set prices are high.

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3 years ago

An example of a fixed cost is

Art [367]

Answer:

A) Rent

Explanation:

This is a fixed cost because rent generally does not change.

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