All categories

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 FIFO (First-in, First-out), LIFO (Last-in, First-Out), and the Weighted Average.

You might be interested in

1. Discuss the following statement: "Corporations are not really run by their owners."

sergij07 [2.7K]

1. Discuss the following statement: "Corporations are not really run by their owners." Corporations are run by everyone who works for the corporation and without everyone working together, it will not run smoothly and bring in revenue.
 
2. Why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation? If an investor decided to join in a limited partnership instead of purchasing the stock on an open corporation they would have less to do with the business side as they would in an open corporation. When an investor joins in a limited partnership they have less management responsibility and little to no liability besides their initial investment.
 
3. Is growth a good thing for all firms? How does management know when a firm is ready to grow? Growth is not a good thing for all firms. Depending on what a company is looking to achieve long term, the financial assets they have now to achieve their growth and other goals are all subject to what the company is able to do with the finances and staffing they have. When a corporation is trying to decide whether or not they should grow, management will examine all aspects of the company to make sure they align with the growth plan.
 

4. If you were to start a business, which ownership form would you choose? What factors might affect your choice? If I were to start a business, I would probably choose a limited liability company (LLC) as the ownership form and structure. An LLC is where the members within the company are not held personally liable for the company’s debts or liabilities. Think ownership form works well if you were to join forces an open up a business with a friend or family member. An LLC keeps the tax side of the business easier as allowing the individuals to be self-proprietors. When considering factors that may change this decision they would include: who I am going in business with, what I am in business for, my end goals, current goals and current financial status.

3 0

3 years ago

ToySpot, a soft toy manufacturer, receives an order of 250 teddy bears. For this particular order, its total inventory includes

Vinil7 [7]

Answer:

185 teddy bears are in work in progress inventory

Explanation:

given data

receives order = 250 teddy bears

fabric = 300 yards

ribbon = 200 yards

cotton = 250 pounds

to find out

how many teddy bears can be considered work-in-process inventory

solution

we know that teddy bears to be manufactured is = 250

so finished and this comes under finished goods inventory are

goods inventory = 65 teddy bears

and still in the process is 185 teddy bears

so they needs to undergo further process because the work is still not completed

so we can say that 185 teddy bears are in work in progress inventory

3 0

3 years ago

Vanguard has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary widel

Svetradugi [14.3K]

Answer:

The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.

Explanation:

Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).

As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.

On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.

8 0

3 years ago

Who is Adam Smith and what is his belief about prices? Do you agree or disagree? Why?

andrew-mc [135]

Answer:

Adam smith is Abigail Smiths husband

Explanation:

They have been married for centies

4 0

3 years ago

For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price

zzz [600]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $109,000

Unit variable cost= $21

Selling price= $85.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 109,000/ (85 - 21)

Break-even point in units= 1,703 units

Now, we need to include the desired profit:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (109,000 + 150,000) / 64

Break-even point in units= 4047 units

Sales= 500,000

Variable cost= 5,882*21= (123,522)

Contribution margin= 376,478

Fixed costs= (109,000)

Net operating income= $267,478

8 0

3 years ago