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Alenkinab [10]
3 years ago
8

Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the foll

owing statements is correct? Question 3 options: A) Cost is greater than net realizable value. B) NRV is greater than replacement cost. C) Cost is less than NRV minus a normal profit margin. D) Cost is less than net realizable value.
Business
1 answer:
nasty-shy [4]3 years ago
4 0

Answer:A. Cost is greater than net realisable value(NRV)

Explanation:

An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory

NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.

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The following information pertained to Azur Co. for the year: Price of goods purchased $102,800 Price discounts 10,280 Freight-i
MrRissso [65]

Answer:

$118,220

Explanation:

The Costs of Goods Sold COGS is calculated using the following formula.

COGS = Beginning inventory + purchases - Ending Inventory

For Azur company

Beginning inventory:  30,840

Ending inventory : 20,560

Net purchases equal Net purchase equal to purchases plus freight-in minus discounts  freight-out are administrative expenses, hence do not feature in COGS

Net purchases =$102,800 + $15,420 -$ 10,280

Net purchases =$107,940

COGS = $30,840 +$107,940 -$20560

COGS = $118,220

7 0
3 years ago
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Whitepunk [10]

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Explanation:

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3 years ago
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never [62]

The best example of how companies are upgrading themselves to meet changing customer preferences is personified in option (C) making online shopping services available.

Since customers nowadays prefer to shop online more often than not, many companies are now providing online marketplaces in combination with their traditional brick and mortar stores. Some companies do not even have a pop up store – they purely do their transactions online.

8 0
3 years ago
Assume that the reserve requirement is 25%. If the Federal Reserve sells $120 million in government securities to the general pu
gladu [14]
Is there any answers choice or I have to figure it my self
6 0
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Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the
Nana76 [90]

Answer:

True

Explanation:

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A casual ambiguity refers to the state of non clarity with respect to how consequences relate to the initial state of a phenomenon.

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