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4 years ago

Which of the following statements is correct? Multiple Choice

Business

1 answer:

nikitadnepr [17]4 years ago

4 0

Answer: D -LIFO results in a higher net income than FIFO when costs are falling.

Explanation:

The LIFO and FIFO are methods of accounting for inventory.

LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.

FIFO means first in,first out. It means older inventories are sold off first.

During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.

When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.

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What can organizations do to keep rewards individualized enough to meet various employee needs (needs theory) while trying to en

julsineya [31]

Answer:

The best way to go about this is to design and operate and rewards system that recognizes individual needs as summarized and proposed by David McClelland.

The theory of equity on the other hand speaks to the perception of how input is compensated for in relation to those of others. Human beings (workers) will come with varying degrees of skills and input.

So to customize rewards in such a way that it recognizes unique contributions in an equitable way, one must first decide what key skills will be required for each job and which jobs are required to achieve organizational goals and objectives.

Explanation:

The Needs Theory by David Mclelland summarizes individual needs into three. They are:

Achievement
Affiliation
Power

A balanced reward system will have financial and non-financial benefits. some of the non-financial benefits will be tailored to have the above components.

- Achievement: An example of this is - Opportunity for higher assignments

- Affiliation: The need to belong to a strong Employer brand

- Power: This answers the question about whether or not one will become more influential as they progress with the company

The equity theory will guide the business owner in ensuring that all selected metrics of input are classed and priced accordingly.

The usual form of input include but are not limited to:

Ability
Adaptability
Commitment
Determination
Education
Effort
Enthusiasm
Experience
Flexibility
Hard Work
Loyalty
Personal sacrifice
Skill
Support from co-workers and colleagues
Time
Tolerance
Trust in supervisors

Equity sometimes is difficult to achieve due to issues with capacity on the part of the company. Best practice, however, is to recognize equity first from the perspective of standard industry practice, then match or exceed such offering by a combination of Financial and Non-Financial rewards that are based on the strength of the organization.

Another strategy is for organizations to adapt it's reward systems to Achievement Based Compensation. This type of compensation instead of focusing on the inputs listed above focuses on results.

In this case, expected results and capacity to deliver and subsequent rewards on same are discussed and agreed upon.

Minimum requirements are also defined ahead of time. Under this kind of structure, equity is achieved, and individual needs are recognized.

Cheers

4 0

3 years ago

Which of the following is NOT a supertrend affecting the future of business? Multiple Choice Offshore suppliers are changing the

Yakvenalex [24]

Answer:

A multiple choice offshore suppliers are changing the way work

6 0

3 years ago

Able Pads, Inc., sells plain white printer paper in a perfectly competitive market. What does its individual demand curve look l

nirvana33 [79]

Answer:

The demand curve will look like a straight line .

Explanation:

Perfect competition is that in which there are large number of buyers and large number of sellers of a commodity and no individual sellers or buyer can control the prices. If the seller try to influence the price then they will loss their buyers as there are many other seller also exist in the market.

Under perfect competition , the firm produce homogeneous product. Both buyers and sellers have full knowledge of the market.

The curve under perfect competition is indicated by horizontal . It shows that a firm can sell any quantity of a product at the prevailing price . And no quantity if they influence the price.

<u>The figure under shows the curve:</u>

3 0

3 years ago

occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in o

Vera_Pavlovna [14]

Answer:

The answer would be PRICE SIGNALING

Explanation:

Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.

8 0

3 years ago

what is the effect on the financial statements when adjust the prepaid insurance account at year-end for insurance coverage whic

yan [13]

Answer:

When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:

income statement: costs increase, decreasing profits
balance sheet: assets and equity decrease
cash flow statement: cash from operating activities increases
owners' equity: decreases

5 0

3 years ago