Answer:
COGS= $130,000
Ending inventory= $110,000
Explanation:
Giving the following information:
Units sold= 500
Purchases:
Dec. 1= 300 units at $250
Dec. 8= 600 units at $275
<u>To calculate the cost of goods sold under the FIFO (first-in, first-out) method, we need to use the cost of the firsts units incorporated into inventory:</u>
COGS= 300*250 + 200*275
COGS= $130,000
<u>Now, the ending inventory:</u>
Ending inventory= 400*275= $110,000
Answer:
The best answer is "B"
To shift profit
Explanation:
Vertically integrated firms are firms that control more than one means through which it converts raw materials to finished products and get it to the consumer.
Transfer pricing is used to value the exchange of an asset or service two products of a vertically integrated firm. It is essentially use to shift profit.
That’s a great question but a hard answer to give
Answer:
e. Prepayment risk
Explanation:
Prepayment risk is the likelihood of the firm where Special Purpose Vehicle that manages the mortgage-backed pass-through securities to repay the principal sum invested or part of it earlier than expected which then denies the investor of interest payments throughout the investment period.
When principals are repaid much earlier, the interest that could be earned on the principal is lost since the principal upon which the interest is to be computed has been repaid, hence, no more basis for the interest thereafter
Answer:
The correct answer is binary variables.
Explanation:
A binary variable is one that can only have two possible values. They generally fulfill two essential characteristics:
1. They are made up of two exhausting values, which indicates that there is no other possibility of response. For example, a person is female or male.
2. Both values of the variable are exclusive, that is, it is not possible that both responses can be given, only one. In the same example above, a customer cannot be a woman and a man at the same time.
