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Hoochie [10]
3 years ago
10

Let A equal the reported inventory value if the lower-of-cost-or-market rule is applied to individual items of inventory while B

equals the reported inventory value if the lower of cost or market rule is applied to the inventory as a whole. In this situation then ________.
Business
1 answer:
Lera25 [3.4K]3 years ago
5 0

Answer:

The correct answer is A will always be equal to or less than B.

Explanation:

In general terms, inventory is valued in terms of cost. But there must be a deviation from the cost basis of the inventory valuation and it must be reduced below cost when the utility of the goods has decreased and its sale product or item value will be less than its cost.

The decrease in the value of inventory below cost can be due to different causes, such as physical deterioration, obsolescence, a drop in the price level, etc. In these situations, the inventory is recorded at its market value. The difference in value (cost-to-market value) is recognized as a loss for the current period. It should be understood that the market value of the inventory must be estimated since the inventory has in fact not been sold. As a general rule, the concept of market value is used in terms of the current replacement cost of inventory, that is, what it will currently cost to purchase or manufacture the item.

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kvv77 [185]

Answer:

Asset exchange transaction

Explanation:

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Rent paid in advance is recorded as follows:

Dr Prepaid rent

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As the months go by, the prepaid rent is credited and rent expenses is debited.

Dr Rent expense month 1

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4 0
3 years ago
The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
tigry1 [53]
First, we take into account the benefit and cost given in the problem. The benefit, which is $2 is a dollar lesser compared to the cost that would be incurred should the business opt to produce one more roast beef. This, of course, tells us that an additional roast beef will just impose an additional $1 cost. Thus, the answer should be the last choice. 
5 0
3 years ago
The Engine Division provides diesel engines for the Motor Home Division of a company. The standard unit costs for Engine Divisio
Lisa [10]

Answer:

The best transfer price to avoid transfer price problems is $2,310

Explanation:

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Variable Cost = Direct Material + Direct labor + Variable Overhead

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                       = 2,100

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Therefore, The best transfer price to avoid transfer price problems is $2,310

3 0
3 years ago
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aivan3 [116]

Answer:

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Explanation:

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Why are the two the opposite? Here's the answer:

Why you should get a high interest rate for a savings account:

You should get a high interest rate for the savings account because the interest you have for the savings account is the money that the bank will give you, so it's pretty much free money that the bank is giving you for having your money saved in their bank. If you want to get more money from the bank because of your savings account, then you should find one with a high interest rate

6 0
3 years ago
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snow_lady [41]
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