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hoa [83]
3 years ago
12

Company C is identical to Company D in every respect except that Company C uses LIFO and Company D uses average costs. In an ext

ended period of rising inventory costs, Company C's gross profit and inventory turnover ratio, compared to Company D's, would be: Gross profit Inventory turnovera. higher higherb. higher lowerc. lower lowerd. lower higher
Business
1 answer:
stepladder [879]3 years ago
5 0

Answer:

d. lower higher

Explanation:

LIFO: It is an inventory valuation method that assume inventory which is placed last in the stock, it will be sold first. Therefore, it is termed as last in, first out.

Average cost method: It is also know as weighted average method, which calculate the cost of total goods produced by dividing total cost of goods available for sales with total number of item produced.

As company C have used LIFO method instead of Average cost method, therefore company have managed to higher inventory turnover, however lower gross profit as compared to company D.

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What does the business cycle shown on this graph suggest about the condition of the economy at point A?
miv72 [106K]

Answer:

C the Ecenomy has been well for while and is

at its highest piont of the cycle

Explanation:

hope it helps

8 0
3 years ago
When preparing a consolidated balance sheet, the noncontrolling interest amount is:
Margarita [4]

Answer:C - Generally presented as a part of stockholders' equity

Explanation: The non controlling interest amount is generally presented in the consolidated financial statement as part of stakeholders equity. The non controlling interest is also known as the minority interest. The non controlling interest arises where the parent company has less than 100% ownership in the business.

5 0
3 years ago
Which of the following describes the goal that should be pursued when setting transfer prices? Minimize opportunity costs. Maxim
nata0808 [166]

Answer:

Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).

4 0
3 years ago
Read 2 more answers
Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid wer
ollegr [7]

Answer:

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

7 0
3 years ago
During its most recent fiscal year, Raphael Enterprises sold 340,000 electric screwdrivers at a price of $19.20 each. Fixed cost
Novay_Z [31]

Answer:

Variable costs=$3,876,000

Explanation:

Given Data:

Fixed costs amounted=$1,156,000

pretax income=$1,496,000.

Units Sold=340,000

Price of each unit sold=$19.20

Required::

Variable costs in the company's contribution margin income statement for the year =?

Solution:

Pretax Income=Revenue-Fixed costs-Variable costs

Revenue=Units Sold*Price of each unit sold

Revenue=340,000*$19.20

Revenue=$6,528,000

Pretax Income=Revenue-Fixed costs-Variable costs

$1,496,000=$6,528,000-$1,156,000-Variable costs

Variable costs=$6,528,000-$1,156,000-$1,496,000

Variable costs=$3,876,000

8 0
3 years ago
Read 2 more answers
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