The effect of the FIFO accounting method on inventory valuations during a period of sharply rising prices is:

Business

1 answer:

vovangra [49]3 years ago

8 0

Answer: Option D

Explanation: Under the first in first out method, the inventories are sold on the basis of the time period they were purchased, that is, the inventory that was bought down the earlier will be sold first.

Hence when the price keeps rising for an inventory, units which were earlier purchased would automatically be less costly than those which were purchased in latest.

Also the goods that were latest purchased will remain in the inventory leading to increase in the value of inventory.

You might be interested in

Family wealth means debt subtracted from salable assets. given the prevalence of debt for those in poverty, what are the possibl

kolbaska11 [484]

<span>The scenario implies that no family wealth will be passed onto children after their parent's death because the parent's debt will cancel out any assets that were accumulated during their life.</span>

5 0

3 years ago

Today, almost every sales rep can immediately check the company's inventory andproduction schedule electronically. This allows s

7nadin3 [17]

Answer:

E) Savings customers time

Explanation:

The fact that sales representatives can verify if the product they want to sale is available before closing the deal is of great benefit to the customers. Customers will not have to go through the bad experience of being promised a product, and having it delivered because of lack of availability.

This will help increase customer loyalty and the firm's reputation in the market.

5 0

4 years ago

Specialization of labor

mestny [16]

Answer:

Economic efficiency implies an economic state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency. When an economy is economically efficient, any changes made to assist one entity would harm another

Explanation:

3 0

3 years ago

Is the grouping of jobs<br> into working units usually called<br> units, groups, or divisions.

lisabon 2012 [21]

Answer:

units is the closest thing

Explanation:

it's usually called departmentalization but units is the next thing

6 0

3 years ago

Read 2 more answers

Most audience members expect your presentation to include

Elan Coil [88]

Answer: Preview-view-review strategy.

Explanation: The preview-view-review strategy is used in many different learning environments. This process allows the presenter or teacher to preview the information that will be covered, go over the information being discussed and then review it as a conclusion at the end. By previewing the information, the audience is able to understand what topics will be covered, then learn about them in the view stage and have a summary of the information covered in the review.

6 0

3 years ago