The inventory has to be recorded separately to each item and this will generally result in the lowest inventory amount.
<u>Explanation:</u>
LCM- the Lower of Cost which is also called as Market rule is the theory for valuating the inventory in accounting. According to the LCM rule, in a business the cost of inventory must be recorded at lower cost (it can be either the current market price or the original cost)
Reason for recording at lower cost:
Aggregating the items results in the incorporation of some items at amounts greater than LCM.
Example:
If product X (cost = 2 dollars, market = 1 dollar) and product Y (cost = 3 dollars, market = 4 dollars) are aggregated for LCM, the inventory measurement will be 5 dollars. If the rule is applied separately to both the products, the LCM measurement will be 4 dollars.
Answer:
A. $520 U
B.178 F
Explanation:
A.
Materials price variance = (AQ × AP) – (AQ × SP)
= $48,880 – (2,600 × $19)
=$48,880-$49,400
= $520 U
Therefore the material price variance for the month is $520U
B.
Materials quantity variance = SP(AQ – SQ*)=
$19 ($2,500 – $2,322) = $178F
Therefore the materials quantity variance for the month $178F
SQ = Standard quantity per unit × Actual output
= 8.6 × 270 = $2,322
Answer:
The correct answer is a. an inadequate infrastructure.
Explanation:
An infrastructure is the set of elements or services that are considered necessary for an organization to function or for an activity to develop effectively.
On the other hand, the infrastructure is the material basis of a society and the one that will determine the social structure, development and social change of the same, including in these levels the productive forces and the relations of production that occur therein.
The amount of utilities cost for July that appears on the flexible budget is12,500*$0.33 = $4.
<h3>Flexible budget </h3>
A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.
<h3>How do you calculate flexible budget?</h3>
To do this, multiply the total production output by the variable cost of each unit produced. For example, if the total production output is 1,000 products and the variable cost for each unit is $25, the total variable cost is $25,000. You can also calculate average variable costs that are not related to production.
Learn more about flexible budget here :
brainly.com/question/14202862
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Answer: Option (A) is correct.
Explanation:
Given that,
Money supply increases (M) = 12 percent
Velocity decreases (V) = 4 percent
Price level increases (P) = 5 percent
Real GDP (Y) = ?
According to the quantity theory of money,
Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y
12% - 4% = 5% + Percent Change in Y
Percent Change in Y = 8% - 5%
= 3%
Therefore, change in real GDP must be 3%.
