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IrinaVladis [17]
3 years ago
9

Which inventory cost method offers income tax savings during periods of rising prices? a.Weighted average inventory cost method

b.FIFO inventory cost method c.Specific identification inventory cost method d.LIFO inventory cost method
Business
1 answer:
viva [34]3 years ago
8 0

Answer:

d. LIFO inventory cost method

Explanation:

Last in first out i.e LIFO inventory cost method refers to the valuation method wherein the last purchased inventory i.e the latest is issued out first.

Under this method, the inventory which is purchased recently is the first to be issued. So in event of rising prices, this would lead to issuing inventory purchased at recent prices i.e high cost first.

This would in turn raise the cost of production and reduce net income. Consequently this would lead to reduced taxes.

Thus, during periods of rising prices or inflation, LIFO offers income tax savings.

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If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a. increase profits. b. leave p
Harlamova29_29 [7]

Answer:

D. increase marginal revenue

Explanation:

If marginal revenue is less than marginal cost then they are producing too much product and need to decrease production until marginal cost and marginal revenue are equal.

6 0
2 years ago
Now Inc. released its annual results and financial statement. Grace is reading the summary in the business pages of today's pape
Goryan [66]

Answer:

c. $71 million

Explanation:

The net income and dividends are the factors responsible for increase an decrease in retained earnings. Net income is added to the retained earnings balance while dividend is deducted from it.

Given the following information about  NOW Inc,

net income = $152 million

Opening retained earnings balance = $459 million

Closing retained earnings balance = $540 million

$459 million + $152 million - Dividends = $540 million

Dividends = $459 million + $152 million - $540 million

Dividends = $71 million

Option c. $71 million

5 0
3 years ago
The one thing that unites all economists is looking at problems from: a. everybody's perspective. b. a detailed risk analysis. c
qwelly [4]

Answer: Detailed risk analysis

Explanation: All economist tend to access life and challenges by taking a critical look at the risks involved and possible ways of solving the challenges.

An example could be seen when setting up a business, the typical economist would analyse the risk associated with the business and possibility of the business failing or succeeding.

5 0
3 years ago
If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use _____
Hatshy [7]

Answer:D $750

Explanation:

This is a way an individual optimise his consumption and his savings habit for their future.

It has to do with the future of any individual and plans are made for the future.

An individual can plan to spend more now and save a little or spend a little now and safe for the future.

3 0
3 years ago
Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In
Alexandra [31]

Answer:

a. $720,000

Explanation:

Since in the question, it is given that the equipment is sold at the list price

The list price is $800,000 and the selling percentage is 90%

So, the revenue should be recorded

= List price × selling percentage

= $800,000 × 90%

= $720,000

Simply we multiplied the list with the selling percentage so that the correct amount can come

3 0
3 years ago
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