1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Karo-lina-s [1.5K]
4 years ago
6

The Company uses lower-of-cost-or-market approach. The replacement cost of an inventory item is $75. Net realizable value is $82

.50. Net realizable value less a normal profit margin is $69. The cost of the item is $76.50. The inventory item would be valued at:
Business
2 answers:
notsponge [240]4 years ago
6 0

Answer: $75

Explanation: Using the lower of cost or market approach, the cost of item in the inventory will be valued at $75.This is because the replacement cost is the assigned to the market value of the item in inventory. The lower of cart or market approach will first compare the cost of item purchased in inventory to the actual market value to the inventory. However, replacement cost in this case, cannot exceed net realizable value (ceiling) which in this case is $82.50 and cannot be lower than the difference between the net realizable value and the normal profit margin called the ( floor)

egoroff_w [7]4 years ago
4 0

Answer:

The inventory would be valued at $75 each

Explanation:

From  a market approach to valuation,we need to first of all compare the replacement cost and net realizable in order to pick the lower of both values,hence the replacement cost of $75 is lower than net realizable value of $82.50.

As a result, we can then compare the lower of replacement cost and initial cost,such that inventory can then be valued at the lower of both.

From the foregoing analysis,the replacement of $75 each per item is lower than the initial cost $76.50,invariably our inventory is valued at $75 each.

You might be interested in
EASY!! Please help!! 25 points
aniked [119]

Answer:

Corporation

Explanation:

3 0
3 years ago
A company purchased a computer system at a cost of $25,000. The estimated useful life is 8 years, and the estimated residual val
FrozenT [24]

Answer:

$4,687.50

Explanation:

The computation of the depreciation expense of the second year using the double-declining method is shown below:

First we have to determine the depreciation rate which is given below:

= One ÷ useful life

= 1 ÷ 4

= 12.5%

Now the rate is double So, 25%

In year 1, the original cost is $25,000, so the depreciation is $6,250 after applying the 25% depreciation rate

And, in year 2, the ($25,000 - $6,250) × 25% = $4,687.50

5 0
3 years ago
There is no important area of human activity than management since its task is that of getting things done through people". Disc
AysviL [449]

Answer:

Yes, it is very much true that management is one of the important human activity and it takes getting work done through other people. We can define management as working with and though other people to get the work done in an effective and efficient way. Working with other people is not that much easy as it looks because every person has its own goals and objective so an effective manager has to keep people motivated for the organizational vision, goals and objectives. Management involves planing, organizing, leading and controlling, where in the first step we have to actually draft a plan where we need to go and where we have to reach. In the next step, manager assigns work to different people that who will be doing what and then manager leads them and keep them motivated all the times. Last step involves keeping track of the progress that whether we are moving in the right direction or not. Therefore, management is very important human activity because we have deal with different people in it.

8 0
3 years ago
A dollar in hand today is worth_______(less than/more than/equivalent) a dollar to be received in the future because if you had
Free_Kalibri [48]

Answer:

more than

earn interest

discount cash flow (DCF)

Explanation:

The concept of future value represents the amount that a lump sum or series of cash flows will achieve after a given period when compounded at an interest rate. This means that a dollar in hand today is worth more than a dollar to be received since it can be applied to earn interest.

The time value of money, which allows us to evaluate different investments, is also known as discount cash flow (DCF).

3 0
4 years ago
"scuba diving." marcy invented a new type of mask that was not subject to fogging for scuba divers and obtained a patent on it.
Angelina_Jolie [31]

Answer:

vvbggghhhhfgghjjhg

Explanation:

5 0
3 years ago
Other questions:
  • Although the overall unemployment rate during the past recession hovered between 9 and 10%, the unemployment rate for millennial
    7·1 answer
  • For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10. A)
    12·1 answer
  • Which of the following is a characteristic of monopolistic competition? rev: 05_15_2018 Multiple Choice relatively easy entry a
    8·1 answer
  • An increase in input prices causes:___________
    9·1 answer
  • The Product Owner of a team was asked for a forecast for the completion of a product release. There were 140 story points worth
    9·1 answer
  • A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen
    10·1 answer
  • The following units of an item were available for sale during the year:
    13·1 answer
  • HELP ME PLEASE ILL GIVE CROWN PLEASE!!
    11·1 answer
  • A firm decides to increase output by opening another plant. In doing so their average total cost changed from $50 with one plant
    9·1 answer
  • What are the "flows" within a supply chain, and why are they important?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!