Answer:
a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.
Explanation:
As we know that inventory will be recorded at cost or market value whichever is lower. But in the given case, the replacement cost would be recorded at higher values and lesser values. Higher values represent the Net realizable value whereas the lesser values represent the net realizable value less than the normal profit margin.
And if the replacement cost lies in this range than it represents the designated market value.
Hence, option a is correct.
Answer:
Cost of each bottle of water is $7.
Explanation:
This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him $7. The cost per bottle of water reduces as units increases.
Answer: $332,540
Explanation: find attached my solution in the document below.
NB : note that the Insurance after equipment placed in service and Insurance for the first year of operations was not added because these are to be termed expenses to be deducted in the P & L account.
A company that operates over the long term in a perfectly competitive market is compelled by competition to change its scale of operation until average cost is minimized.
More about perfectly competitive market:
In a market structure known as perfect competition, numerous businesses sell comparable goods while making almost little profit because of the intense competition.
A market that is perfectly competitive is one in which all enterprises sell the same good and where there are no barriers to entry or leave. The existence of several enterprises and the homogeneity and uniformity of the products are essential elements of perfect competition.
Learn more about perfect competition here:
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The reserve requirement given the money multiplier is 7.143%.
<h3>What is the money multiplier?</h3>
The money multiplier is the total increase in money supply given the reserve requirment. Reserve requirment is the percentage of deposits required by banks to be kept as reserves.
Reserve requirement = 1 / money multiplier
1/14 = 7.143
To learn more about money multiplier, please check: brainly.com/question/25812353
