Answer:
3 is the correct answer, financial managers are in charge of all of the companies finances
Explanation:
Answer:
It is cheaper to make the units in-house by $300,000.-
Explanation:
<u>First, we need to calculate the total avoidable production costs of making 300,000 units:</u>
Total variable cost= 300,000*15= $4,500,000
Total avoidable fixed cost= 800,000 - 200,000= $600,000
Total production cost= $5,100,000
<u>Now, the total differential cost of buying:</u>
<u></u>
Cost of buying= 300,000*18= $5,400,000
It is cheaper to make the units in-house.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $100,000
To Notes payable A/c $100,000
(Being the issuance of the note payable is recorded)
For recording this transaction, we debited the cash account as it increases the asset and credited the note payable account as it also increases the liabilities account
Answer and Explanation:
As per the data given in the question,
a)
1. FIFO inventory > LIFO inventory
(Because in case of LIFO recent purchases are considered in production first or sold first so the remaining inventory are old inventory which is less costlier.)
2. FIFO cost of goods sold < LIFO cost of goods sold
(Because in case of LIFO recent purchases are considered in production first which are expensive so the cost of production is greater than FIFO.)
3. FIFO net income > LIFO net income
(Because cost of production is less under FIFO and the value of closing inventory is high, therefore the net income is also high.)
4. FIFO income taxes > LIFO income taxes
(Since, income is high in FIFO, therefore the tax under FIFO will be higher.)
b)
Management would like prefer to use LIFO over FIFO in periods of rising prices because Income shown in the company's Tax return will be higher if we use FIFO rather than using LIFO.
Answer:
Monopolistic competition
Explanation:
A monopolistic competition is when there are many firms selling differentiated products in an industry.
A monopolistic industry has characteristics of both a monopoly and a perfect competition. The demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
