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ivolga24 [154]
4 years ago
11

A company understated its ending inventory balance by $5,000 in 2018. What impact will this error have on cost of goods sold and

gross profit in 2018 and 2019, assuming no other errors are made in either year?
Business
1 answer:
madreJ [45]4 years ago
3 0

Answer:

COGS overstated for 5,000

Explanation:

<em>The COGS will be overstated  for the same ammount,</em> that is because of the inventory identity.

$$Beginning Inventory + Purchase = Ending Inventory + COGS

If ending Inventory has a problem, it will be transferred to COGS as well to equalize the formula

If ending Inventory is understated it means their alue is less than it's real value,

$$Beginning Inventory + Purchase \neq Ending Inventory (Real Inventory - Understimation) + COGS

so to balance the formula COGS need to be overstated.

$$Beginning Inventory + Purchase = Ending Inventory (Real Inventory - Understimation) + COGS(Real COGS + EI error)

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Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and ha
Mars2501 [29]

Answer: substantial

Explanation:

From the question, we are informed that Greta is concerned that one of the potential market segments she has identified for her dog grooming service is too small and has too little income to have sufficient buying power.

The above analysis shows that Greta is concerned with whether the substantial segment. A segment is said to be substantial when the said segment is big and therefore should be worth targeting and the members of this particular segment should have buying power.

4 0
4 years ago
In credit terms of 3/15, n/45, the 3 represents the
Olin [163]

Answer:

The 3 represents the percentage of cash discount. It means the cardholder will receive a 3% discount if the bill is paid within 15 days from the billing date.

6 0
3 years ago
Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six w
Kisachek [45]

Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience <u>role overload.</u>

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Role overload is a specific stressor that reflects the perception that the demands of a job role exceed an individual's resources (Eatough et al., 2011). Therefore, role congestion can lead to resource exhaustion. This is a phenomenon that can be understood through a COR lens.

Role overload occurs when a person plays multiple roles at the same time and does not have the resources to perform them. It can develop not only from being mentally overwhelmed but also from being overwhelmed with time.

For example, if an employee leaves the company, it may be necessary to temporarily expand the role of another employee to accommodate the absence of the absent employee.

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Learn more about Cameron here: brainly.com/question/2049411

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7 0
2 years ago
A machine costing $57,000 with a six-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly deprecia
RSB [31]

Answer:

$9,000

Explanation:

The computation of the depreciation expense using the straight-line method is shown below;

= (Purchase value of machinery - residual value) ÷ (estimated useful life)

= $54,000 ÷ 6 years

= $9,000

The depreciation cost is the cost which is come after considering the salvage value and the same is to be considered

Hence, the depreciation expense is $9,000

5 0
3 years ago
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
4 years ago
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