When prices are rising, the Cost of Goods Sold according to LIFO will be <u>higher </u>than cost of goods sold under FIFO.
Last-In, First-Out (LIFO) refers to a company selling off the latest inventory that it receives first before the inventory it received earlier.
When prices are rising, LIFO will result in a higher COGS because:
- Purchases will be high
- Closing stock will be low on account of only the earlier cheaper inventory being left
In conclusion, LIFO results in cost of goods sold being higher because the closing stock which is deducted from COGS will be lower.
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Answer:
Division N's purchase costs will decrease by $90,000 per year
Explanation:
Division N's purchase cost form outside vendor = total units purchased per year x unit price = 30,000 units x $15 = $450,000
if Division N obtains the product form division M with a transfer price of $12 per unit, their costs will decrease by = total units x (vendor price - transfer price) = 30,000 units x ($15 - $12) = $90,000 per year
Answer:Consumer protection laws exist to prevent dangerous or unethical business practices, such as false advertising or faulty products. For most consumer goods, the Federal Trade Commission regulates warranties and service contracts.
Explanation:
Answer:
0.4766
Explanation:
Given:
WACC = 9.7%
Company’s cost of equity = 12%
Pretax cost of debt = 7.5%
Tax rate = 35%
Now,
WACC
= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)
or
0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)
or
0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight
or
0.04825 = 0.07125 × weight
or
weight = 0.6772
also,
weight = 
or
= 
or
= 
+ 1
or
1.4766 = + 1
or
= 0.4766
Answer:
Taking $1 from Carl and giving it to Andy would increase society's total utility.
Explanation:
Since Andy's income is less than other three people when a $1 taken from Carl would increase Andy's utility more than the loss in utility of Carl. Thats why total utility would increase.
