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worty [1.4K]
3 years ago
9

The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredicta

ble fluctuations in downstream demand B. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures D. Firms decrease inventory because there is a risk of interruptions in the flow of components/materials from upstream suppliers E. Firms decrease inventory because there is a risk of interruptions due to unreliable productivity and quality.
Business
1 answer:
Aleks [24]3 years ago
7 0

Answer:

The correct answer is option (c).

Explanation:

Solution

From the question sated above the answer is, Firms or organisation decrease inventory because the more we spend on inventory, the more we will need to spend on the other related inventory expenditures.

The reason is because if the inventory is kept full or complete, then the cost related or connected with the maintenance of the inventory increases or goes up and it is not beneficial for the company itself.

You might be interested in
The following information pertains to Ash Co., which prepares its statement of cash flows using the indirect method: Interest pa
Alborosie

Answer:

$30,000

Explanation:

A supplemental disclosure of cash flow information requires that all the cash paid  in interest during the period must be disclosed.

In Ash's case:

beginning balance interest payable account    $15,000

+ interest expense during the year                    $20,000

<u>- ending balance interest payable account       ($5,000)  </u>

supplemental disclosure =                                  $30,000      

6 0
3 years ago
Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound.
butalik [34]

Answer:

materials quantity variance: 1,200 unfavorable

Explanation:

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity 5400.00

actual quantity 6000.00

std cost  $2.00

(5,400 - 6,000) \times 2.00 = DM \: quantity \: variance

difference -600.00

quantity variance  $(1,200.00)

The difference between standard and actual quantity is negative. We used more pounds than expected, the variance will be unfavorable.

600 extra pounds at $2.00 each = 1,200

6 0
3 years ago
Magenta Company purchased a machine from Pink Corporation on October 31, 2018. In payment for the $288,000 purchase, Magenta iss
Blababa [14]

Answer:

$3,176 , it's two months of interests $1,588 + $1,588

Explanation:

If the company paid each month 1/12 of capital plus interest it means that it's necessary to deduct the total amount of interests paid each month.

The company paid $25,588 and the monthly capital it's $24,000, therefore the company paid on interest an amount of $1,588 each month.

The issue of a one year installment note means that the company repay the principal to the lender in a series of periodic payments, in this case each month pay principal plus interests

In the income statement we have to applied the accrual criteria which means that the company only recognize the interest paid in the past months, November and December.

5 0
3 years ago
You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect
dedylja [7]

Answer:

Amount investment in Sock Y = - $126,000

Beta of portfolio = 1.636

Explanation:

Data provided in the question:

Total amount to be invested = $140,000

Stock                          X       Y

Expected return       14%     10%

Beta                          1.42     1.18

Expected return of portfolio = 17.6%

Now,

let the weight invested n stock X be W

therefore,

Weight of Stock Y = 1 - W

thus,

( W × 14% ) + (1 - w) × 10% = 17.6 %

or

14W + 10% - 10W = 17.6%

or

4W = 7.6

or

W = 1.9

Therefore,

weight of Y = 1 - 1.9 = -0.9

Thus,

Amount investment in Sock Y = Total amount to be invested × Weight

= 140,000 × ( - 0.9 )

= - $126,000 i.e short Y

Beta of portfolio = ∑ (Beta × Weight)

= [ 1.42 × 1.9 ] + [ 1.18 × (-0.9) ]

= 2.698 - 1.062

= 1.636

6 0
3 years ago
Jade is concerned about her risk of osteoporosis. to help reduce her risk of this condition, jade should ________.
Alexandra [31]
The correct answer is Physical Activity Level.

Physical Activity Level or also known as PAL is best described as a way to explicit a person's daily physical hobby as quite a number, and is used to estimate a person's overall strength expenditure. In combination with the basal metabolic rate, it could be used to compute the amount of food power someone needs to eat so as to keep a selected way of life.
3 0
3 years ago
Read 2 more answers
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