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andrezito [222]
3 years ago
8

The U.S. GAAP lower of cost or market rule for inventories may be applied to total inventory, to groups of similar items, or to

each item. Which application generally results in the lowest inventory amount?
Business
1 answer:
Aliun [14]3 years ago
8 0

The inventory has to be recorded separately to each item and this will generally result in the lowest inventory amount.

<u>Explanation:</u>

LCM- the Lower of Cost which is also called as Market rule is the theory for valuating the inventory in accounting. According to the LCM rule, in a business the cost of inventory must be recorded at lower cost (it can be either the current market price or the original cost)

Reason for recording at lower cost:

Aggregating the items results in the incorporation of some items at amounts greater than LCM.

Example:

If product X (cost = 2 dollars, market = 1 dollar) and product Y (cost = 3 dollars, market = 4 dollars) are aggregated for LCM, the inventory measurement will be 5 dollars. If the rule is applied separately to both the products, the LCM measurement will be 4 dollars.

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There may be a great deal of interaction between a service provider and a consumer in which they co-create value together. In su
fomenos

Answer:

Inseparability

Explanation:

Inseparability is one of the key principles in properly understanding the concept of service quality delivery. Service Quality is a phenomenon which seeks to determine, evaluate and critically look into how service delivered tow in line with the clients' expectations and objectives.

Evidently, and in a bid to co-create value, there is often a great deal of interaction between a service provider and a consumer. Suffix to say, the consumer here could be an individual or a body corporate.

A good service quality delivery is hinged on the skills, abilities and competencies of parties involved. The implication of the foregoing is that the end product of an exercise and in this case - value creation, is proportionate to the abilities and skills the individuals involved are bringing on board.

When service is been provided and expectations fall short, what I would do as a rational consumer is to match the provider of the service with the service provided. In this case, evaluation, rating and critical appraisal will be solely placed on the service provider. A consistent good service quality delivery by a particular service provider is enough to buy me over by the said provider, as it would have been established, through the service provider's track record, that good service quality delivery is its hallmark. Hence, more often than not, we say a client expectations of a product or service is inseparable to the product or service provider.

4 0
3 years ago
A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, d
ki77a [65]

Answer:

Intrinsic value is $114.30

Explanation:

Given:

Dividend paid = $8

Required rate of return = 7% or 0.07

There is no growth in dividends.

Calculate price of preferred share using DDM as shown below:

Price of preferred share = Dividend paid ÷ Required rate of return

                                          = 8 ÷ 0.07

                                          = $114.28 or $114.3

Therefore, price of preferred share is $114.30

6 0
3 years ago
Charity organisation has asked you to raise money for it by running a fete The organiser has given you a maximum amount to spend
Ahat [919]

Answer:

Charity fund should be handled with care as it is donor's money which should be handled with care. The amount of charity should be spent for the actual cause.

Explanation:

Charity fund is the money which should be handled with great care. The major fund of the charity should be attribute to the main cause and there should be proper record maintenance for every penny spent. The charity fund is the responsibility of the management and any donor can ask anytime about the money spent.

5 0
3 years ago
Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would a. rise and exports of other industrie
enot [183]

Answer:

The correct answer is b. rise and exports of other industries would decrease.

Explanation:

The import quota is a tool that countries have when limiting the physical quantity of a product that can be imported into their territories during a specific period.

4 0
3 years ago
Read 2 more answers
Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year e
alexgriva [62]

Answer:

Indication of items erroneously stated on:

A) the income statement for the year

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Therefore, the Net Income will be overstated.

B) the balance sheet as of October 31:

Salaries Expense Payable (current liabilities) will be understated.

Explanation:

When accrued salaries are not accounted for in the financial statements for an accounting period, it means that the revenues generated for that period are not being matched with the expenses incurred in generating the revenues.  Such omission does not agree with the accrual concept and the matching principle of generally accepted accounting principles.  These require that expenses are accrued whether paid for or not, and that expenses are matched to the period's revenue since they are necessarily incurred in generating such revenue.

7 0
3 years ago
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