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3 years ago

Which of the following statements is correct? Multiple Choice

Business

1 answer:

nikitadnepr [17]3 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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Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory 100 Sets Direct material

vesna_86 [32]

Answer:

Actual price= $1.6 per unit

Actual price= $3.2 per set

Explanation:

<u>To calculate the actual price, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

400= (1.8 - actual price)*2,000

400= 3,600 - 2,000actual price

2,000actual price = 3,200

actual price= $1.6 per unit

8 0

3 years ago

1. You recently inherited some property between a wealthy neighborhood and a fairly poor neighborhood. You have constructed a bu

pishuonlain [190]

Answer:

Pricing is a very important component of Marketing. Marketing is essential for business performance.

The first objective of pricing is to ensure that the business is profitable.

The second is to ensure that one does not under price or over price. In order words, one would like to ensure that they get the best value possible for their products and or services.

A major factor for consideration when setting prices is the existence and behaviour of the competition and those of the customers.

According to the question, the convenience store will be the only one situated in the wealthy neighbourhood and those who are poor will not mind paying higher prices as the only other store which is the poorer neighbourhood is dangerous.

The challenge here is this, if the prices become too high for the poor residents to pay, they will start to think outside the box. They will opt for a solution(s) that will help them resolve the dilemma of having to choose between danger and having to spend so much at the new convenience store.

Their solutions could be to contribute some money to purchase a store at a safe location, where they can set up a business that will serve the community (both wealthy and rich) at reasonable prices.

Therefore, the best option is to ensure that the prices are just okay as an incentive for the poor to commute all the way to the new store rather than the one that has little or no security. The opportunity cost lost in terms of profit that would have been made is the cost to the company for ensuring that competition does not arise in the nearest future.

The consideration for whether or not the rich will pay is already attended to. Given that the wealthy don't have a convenience store within reach, this store most likely will be welcome as a relief to those who had to travel outside of their locality to do their shopping.

Cheers!

3 0

3 years ago

An assumption about cost flow is necessary:

Novosadov [1.4K]

Answer:

d. because prices usually change, and tracking which units have been sold is difficult

Explanation:

Cost flow assumptions is necessary because there is constant change of cost which is the experience of companies, also due to inflation. If there is a stable cost, cost flow would be inconsequential

7 0

3 years ago

Read 2 more answers

Which of the following terms best describes the relationship between a salesperson and a client that revolves around business-re

Hatshy [7]

Answer: Business relationship

Explanation: In simple words, business relationship refers to the relationship between two parties that totally depends on the factor that what those two parties are getting from that relationship.

These are actually not friendships but an arrangement under which both the parties are highly dependent so they arrange a strong mutual understanding for business of each other. However, such understanding can change with the changing business environment.

Thus, from the above we can conclude that the correct option is C.

8 0

3 years ago

In recent years, banks have encouraged their customers to save by giving incentives to join programs that automatically transfer

MrRa [10]

Answer:

The correct answer is the economists believe consumers would not be willing to transfer the money from their checking account to their savings account.

Explanation:

From the given question, the statements that best describe why the economists would be concerned is that, the economists believe consumers would not be willing to transfer the money from their checking account to their savings account.

In recent times, bank have encouraged it's customers to join programs that would be of benefit to them such as transferring money automatically from their checking accounts to savings. these programs was designed to benefit he customers into saving money, but economists had this believe that customers might not be willingly to transfer money into their savings account from the checking account which might have resulted to doubt and trust for the bank.

3 0

3 years ago