<u><em>Explanation</em></u>:
<u>(a) FIFO</u>
In using this method we calculate cost based on the price of the earliest (first) purchased inventory date.
(b) LIFO
Here we calculate cost by using the price of the most recent (last) purchased inventory date. eg for inventory cost calulations for March 9 we use the price value of March 29
(c) weighted average
This meeting uses the average cost of the entire inventory in the month. Calculated by dividing total cost by today inventory.
(d) specific identification.
Here cost are just assigned to each individual item or batch of items in the period.
Answer: An "Ivory Tower" approach could lead the executive team to a plan created in a vacuum without an understanding of current operating realities
Explanation:
Based on the information given in the question, the potential pitfall that could impact the strategic plan for this company will be an "Ivory Tower" approach could lead the executive team to a plan created in a vacuum without an understanding of current operating realities.
It should be noted that when a strategy is being designed by an organization, everyone in the organization has to be carried along and the current happenings in the company and its environment has to be taken into account. When these are ignored, it may lead to a negative impact on the organization.
Answer:
The answer is B. Overstate net income by $38,000.
Explanation:
Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.
Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.
