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frozen [14]
3 years ago
15

The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d

uring the year. b. there is substantial increase in the cost of inventory during the year. c. the gross margin percentage changes significantly during the year. d. all ending inventory is destroyed by fire before it can be counted.
Business
1 answer:
lukranit [14]3 years ago
6 0

Answer:

The gross profit method of inventory valuation is not valid when

c. the gross margin percentage changes significantly during the year.

Explanation:

Gross Profit Method:

It is such method that is used to determine the value of ending inventory in a specific period.

  • The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
  • The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.

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Consider the single factor APT. Portfolio A has a beta of 0.5 and an expected return of 12%. Portfolio B has a beta of 0.4 and a
Jobisdone [24]

Answer and Explanation:

Given:

For portfolio A

Expected return of 12%

beta = 0.5

Risk premium for A = ?

For portfolio B

Expected return of 13%

beta = 0.4

Risk premium for B = ?

Risk-free rate of return = 5%

Computation:

For portfolio A

12% = 5% + (0.5 × risk premium for A)

risk premium for A = 14%

For portfolio B

13% = 5% + (0.4 × risk premium for B)

risk premium for B = 20%

short position "A"

Long position "B"

8 0
3 years ago
Suppose the digby company begins to compete through good designs, high awareness and easy accessibility for their existing produ
Elodia [21]

The Digby team will select a Broad differentiation strategy for spreading its existence in every market segment.

<h3>What is Broad differentiation strategy?</h3>
  • A broad differentiation strategy consists of building a brand or business that is different in some way from its competition. It is applied to the industry and will appeal to a vast range of consumers.
  • Under this strategy, the Digby company will get a competitive advantage by differentiating their products with unique designs, product awareness, and easy availability. They have amazing research and development teams to keep their products exciting and the prices are quoted above average.

To learn more about Broad differentiation strategy, refer: brainly.com/question/28329756?referrer=searchResults

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6 0
1 year ago
Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fires are
sergejj [24]

Answer:

Option (C) is correct.

Explanation:

Nominal GDP:

= (No. of burgers sold × Selling price of each) + (No. of fries sold × Selling price of each)

= (4000 × 3) + (6000 × 1.5)

= 12,000 + 9,000

= $21,000

Real GDP (in 2008 prices)

= (No. of burgers sold × Selling price of each) + (No. of fries sold × Selling price of each)

= (4,000 × $2.50) + (6000 × $2)

= 10,000 + 12,000

= $22,000

GDP deflator:

= (Nominal GDP ÷ Real GDP) × 100

=  (21000 ÷ 22000) × 100

= 95.45

8 0
3 years ago
Inventory is important in the supply chain for many different reasons. Why would you invest the​ company's money for inventory a
Makovka662 [10]

Answer:

All the answers are right

Explanation:

A.To provide a hedge against inflation. : in an inflationary economy, a company can invest in inventory in order to be prepared for the higher prices of raw materials to come. So they can maintain the company´s profit.

B. To tightly synchronize production and distribution processes: inventory of final products can help to minimize the effects of unexpected production problems.

C. To ensure that item cost is maximized: A company can buy a bulk of raw material since the cost of a large number of units is lower. So the final product's cost will be maximized.

D. to tightly synchronize a​ firm's production with its​ customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

6 0
3 years ago
In a proposal, where should you introduce the problem, need, or opportunity you'll address?
natita [175]

In the opening as the introduction is the place where introduce the problem, need, or opportunity that will address by the person, in a proposal.

<h3>What does it mean to write a proposal?</h3>

A proposal is a document that, technically speaking, tries to persuade the reader to adopt a plan or project that is being provided. For their operations to be successful and to land new contracts, the majority of firms rely on persuasive proposal writing.

A person can observe that a proposal frequently contains the following: a brief explanation of the problem, the suggested solution, the costs involved, and the benefits.

Thus, In the opening as the introduction is the place.

For more details about write a proposal, click here:

brainly.com/question/1341280

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5 0
2 years ago
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