FIFO will result in higher pretax income and EPS.
FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.
FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.
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Answer:
d. It recognizes that manufacturing and service delivery systems must execute quality specifications well.
Explanation:
GAP provides for better performance and accounting standards.
Whether manufacturing unit, or a unit of providing service, it establishes some standards which need to be complied with. Accordingly one of the standard requires the units to have quality specifications. This means that the manufacturing units along with units providing service shall not only consider for increasing their revenue, but also increase the quality provided by them.
The owner is usually the one who developed the menu.
Answer:
$35,660
Explanation:
the depreciable value of the vehicle = $47,550 - $4,500 = $43,050
depreciation expense per mile driven = $43,050 / 105,000 miles = $0.41
depreciation expense 2019 = $0.41 x 10,500 = $4,305
depreciation expense 2020 = $0.41 x 18,500 = $7,585
accumulated depreciation = $11,890
book value = $47,550 - $11,890 = $35,660
Answer:
Turnover Company
The net income of Turnover will increase by $500,000.
Explanation:
a) Data and Calculations:
Turner Company's shareholding in ICA = 10%
ICA pays dividend totalling $5 million
Turner's share of dividend = $500,000 ($5 million * 10%)
b) This is not based on equity accounting. Instead, the investment will be reported at fair value. Equity accounting method will be applied in recording Turner's investments in ICA Company, if the ownership interest is valued at 20–50% of the stock.
c) The $500,000 dividends received from ICA Company will be reported in the Income Statement of Turner Company as other income, unless Turner ordinarily buys and sells stocks. The 10% shareholding does not amount to significant control or influence for the accounts of Turner and ICA to be consolidated.
