B increase development cost for new chemical products
Answer and Explanation:
The effect of undervaluation of Inventory is shown below:-
Inventory Understated = Inventory counted + Correct value of inventory
= $545,000 - $554,000
= $9,000
Now, the effect of undervaluation of Inventory is
Cost of goods overstated by $9,000
Net income understated by $9,000
Retained earning understated by $9,000
Assets (Current assets - Inventory) understated by $9,000
Answer:
pooling losses
Explanation:
This agreement embodies the concept of pooling losses. In this concept, each individual loss is spread over to the entire group. In order for this arrangement to be effective, a large number of farmers are required, so whenever a farmer suffers a loss, it will be mitigated due to the pooling over the large group.
