Answer:
d. money a company shares with the stockholders
Explanation:
A dividend is money a company shares with the stockholders.
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Answer:
c. To focus on establishing a brand name
Explanation:
Specialty products are products that people want to buy because they are unique and are from a certain brand they prefer. According to this, the answer is that in this case, the objective of the manufacturers of Caroline Perfumes would be to focus on establishing a brand name because that would create customers' loyalty and they would be willing to make an effort to buy the product.
Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
Answer:
Cost of Goods Sold 70 Inventory 70
Explanation:
For recording the inventory in the book of accounts, we consider the cost or net realizable value whichever is lower
According to the question, the inventory unit for A would be recorded at $655, and the inventory unit for B would be recorded at $505 as these reflect the lower cost.
The journal entry is shown below:
Cost of goods sold A/c $70 ($575- $505)
To Inventory A/c $70
(Being adjusted entry recorded)
Answer is D: Loan
When we talk about financing something we are talking about taking out a loan to purchase the product.
For example, if we say we are looking to finance the purchase of a home, we are talking about taking out a loan to purchase our home
