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3 years ago

An assumption about cost flow is necessary:

Business

2 answers:

Novosadov [1.4K]3 years ago

7 0

Answer:

d. because prices usually change, and tracking which units have been sold is difficult

Explanation:

Cost flow assumptions is necessary because there is constant change of cost which is the experience of companies, also due to inflation. If there is a stable cost, cost flow would be inconsequential

harina [27]3 years ago

7 0

Answer:

The correct answer is letter "D": because prices usually change, and tracking which units have been sold is difficult.

Explanation:

Costs flow assumptions are the result of many factors. Inflation, changes in costs as a result of changing prices, and inventory sales tracking per unit are the most important. Cost flow assumptions analyze how costs are removed from a firm's inventory and reported in the account of Cost of Goods Sold using costing methods such as the <em>FIFO (First-in, First-out), LIFO (Last-in, First-Out), </em>and <em>the Weighted Average.</em>

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2 years ago

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2 years ago

A firm has decided to use the fair value option to record the value of a long-term liability. if the fair value of the liability

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3 years ago

Equipment costing $17,500 with an estimated salvage value of $1,180 and an estimated life of 4 years was purchased on October 31

svp [43]

Answer:

the depreciation expense recorded is $680

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

= (Purchase cost - residual value) ÷ (estimated life)

= ($17,500 - $1,180) ÷ ( 4 years)

= $4,080

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3 years ago

Mary's Baskets Company expects to manufacture and sell 24 comma 000 baskets in 2019 for $ 7 each. There are 2 comma 000 baskets

denis23 [38]

Answer:

The budgeted sales revenue is : $168,000

Explanation:

In 2019, as Mary's Basket Company has the opening Inventory balance of 2,000 baskets; projects to manufactures 24,000 baskets, plans to maintain ending inventory at $2,000 baskets without any work-in-process inventory; We have the baskets available for sales in the year of 2019 is:

Actual Ending Balance of 2018 + Projected manufactured baskets during the year 2019 - Planned ending Balance of the year 2019 = 2,000 + 24,000 - 2,000 = 24,000

The unit price is projected at $7.

Thus, we have the projected sales revenue is:

Projected Unit price x Projected baskets available for sales = 7 x 24,000 = $168,000

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2 years ago