Answer:
A) Recognize the write-down as a separate line item.
Explanation:
IAS 2 Accounting for Inventory requires that inventory be recognized at the lower of cost or net realizable value. Inventory is a balance sheet item which is initially recognized at cost.
However, once there is an indication that the cost is lower than the net realizable value, the carrying amount of inventory is written down with the write off recognized as a separate line in the P/l and not as an addition to the cost of goods sold.
Hence the right option is A) Recognize the write-down as a separate line item.
Answer:
Identify options.
Explanation:
Added value negotiation is defined as value that is added to a deal between parties to enhance relationship between them. It goes further than normal negotiation by providing something extra.
It focuses on interest, develops options, and creates deals that benefits all parties involved.
Mark did not want to buy cheap bags as a new year gift for his employees, while the employees did not want exorbitant bags.
Mark is focused on adding more value than the employees expect in this scenario.
Answer:
$378,000
Explanation:
Best Corp. has income before tax of $540,000.
The tax rate is 30%. the amount of tax will be 30% of $540,000.
= 30/100 x $540,000
=0.3 x 540,000
=$162,000
Tax amount = $162,000.
Net income = Income before tax - tax amount
=$540,000 - $162,000
=$378,000
Answer:
Sole proprietorship
Explanation:
A sole proprietorship is a business form of an organization in which there is only a single owner who operates and controls the business. The main motive of every organization is to maximize revenue, minimize losses and taxes. Also it has unlimited liability
Therefore in the given situation, the sole proprietorship would be the appropriate and the same is to be considered
Answer:
A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.
Explanation:
In a pull marketing strategy, the company focuses on targeting customers to want the product under consideration specifically. For this the company focuses on targeting customers directly by providing straight discounts when bought from production houses directly.
This basically ignores the role of retailers and middle persons in the supply chin. Companies target the customer in such manner so that customers directly contact the producing houses.
Accordingly, orders are booked in store level only, through estimated sales study.
