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jasenka [17]
3 years ago
10

Which of the following statements regarding inventory costing methods is correct? Multiple Choice In periods of inflation, LIFO

will result in the lowest reported net income, and therefore a company will pay less in federal income taxes
Business
1 answer:
Lynna [10]3 years ago
3 0

Answer:

In periods of inflation, LIFO will result in the lowest reported net income, and therefore a company will pay less in federal income taxes ⇒ TRUE STATEMENT

Explanation:

Last in, first out (LIFO) uses the  price of the last units purchased in order to determine the cost of goods sold. When inflation is high, prices tend to increase continuously, therefore, the price of the last units purchased will always be higher than the price of the first units purchased. This doesn't mean that exactly the last units purchased will be the ones sold, it is just an accounting method.

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In the country of Mashwen, the state owns key industries such as energy and transportation. The rest of the industries are priva
zzz [600]

Answer:

Mixed economy.

Explanation:

In the country of Mashwen, the state owns key industries such as energy and transportation. The rest of the industries are privately owned. Mashwen is a <u>Mixed</u> economy.

Mixed economy: It is a shared economy system, which has equal role of private enterprises and public enterprises. In the current global market, most of the economy are mixed economy. It allow private enterprises with equal opportunity to participate in the market, it create healthy competition among different player and buyer can have variety of product at low price.

8 0
3 years ago
The Werner Corporation uses the weighted-average method in its process costing system. The company recorded 24,400 equivalent un
olga_2 [115]

Answer:

21,000 units

Explanation:

The computation of the number of units started during November in the department is shown below:-

Number of units started during November in the department = units completed and transferred out + units in the ending work in process inventory - units in the Beginning work in process inventory

= 22,000 + 4,000 - 5,000

= 21,000 units

Therefore we have applied the above formula.

4 0
3 years ago
The following two graphs show the markets for smartphones in Sweden and Norway. Use the graphs to answer the questions that foll
zalisa [80]

Answer:

Assume there are no transportation costs. With trade, the price of $22.5 brings about balance in exports and imports. At this price, 600 smartphones are traded. With trade, Sweden produces 900 smartphones and consumes 300 smartphones, and Norway produces 300 smartphones and consumes 900 smartphones.

Now suppose the per-unit transportation cost from Sweden to Norway is $5. With trade, the transportation cost changes the price of smartphones in Sweden to $25 and in Norway to $25. Sweden will produce 800 smartphones and consume 400 smartphones, thus exporting 400 smartphones. Norway will produce 400 smartphones and consume 800 smartphones, thus importing 400 smartphones.

Explanation:

With no transportation costs, Sweden shall export smartphones and Norway shall import smartphones because the market price is lower in Sweden than in Norway.

The demand and supply functions for smartphones in Sweden, derived from the given values, are:

Q_{D} = 1200 - 40P\\

Q_{S} = 40P

The export supply (ES) equation is:

ES = Q_{S} - Q_{D}

ES = 40P - (1200 - 40P)

ES = 80P - 1200

The demand and supply functions for smartphones in Norway, derived from the given values, are:

Q_{D} = 1800 - 40P

Q_{S} = 40P - 600

The import demand (ID) equation is:

ID = Q_{D} - Q_{S}

ID = 1800 - 40P - (40P - 600)

ID = 2400 - 80P

The equilibrium price and quantity traded is determined where ES = ID.

80P - 1200 = 2400 - 80P

This simplifies to P = 22.5

Q = 2400 - 80(22.5) = 600

Next, a transaction cost of $5 per unit is imposed from Sweden to Norway. This changes the ES function as follows.

New ES = 80(P - 5) - 1200

New ES = 80P - 1600

The new equilibrium is where New ES = MD.

80P - 1600 = 2400 - 80P

This simplifies to P = 25

Q = 80(25) - 1600 = 400

7 0
3 years ago
Income elasticity of demand is
coldgirl [10]

Answer: Option (a) is correct.

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded with change in the income level of an individual.

Income\ elasticity\ of\ demand=\frac{percentage\ in\ quantity\ demanded}{percentage\ change\ in\ income}

Income of an individual has a positive relationship with the demand for normal goods and has a negative relationship with the demand for inferior goods.

3 0
3 years ago
Read 2 more answers
Writing down ways you would like your community to improve is an example of which of the following? A. humanitarianism B.generat
vitfil [10]

Generation good business ideals

8 0
3 years ago
Read 2 more answers
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