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LenKa [72]
3 years ago
11

What is meant by market in the lower-of-cost-or-market rule?

Business
1 answer:
Pavel [41]3 years ago
7 0

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.

This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

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Striker 44 Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the pro
Gnoma [55]

Answer:

correct option is A. ​$331,000

Explanation:

given data

Direct materials =  ​$86,000

Direct labor ​= 130,000

Variable factory overhead = ​57,000

Fixed factory overhead ​= 135,000

Total costs = ​$408,000

avoidable =  $58,000

to find out

highest price that McMurphy should be willing to pay for​ 12,000 units of the part is

solution

we get here highest price that McMurphy should be willing to pay for​ 12,000 units of the part that is express as

highest price  = Direct material + Direct Labor + variable factory overhead + avoidable fixed overhead   .....................1

put here value we get

highest price  = $86000 + $130000 + $57000 + $58000

highest price  = $331,000

so correct option is A. ​$331,000

7 0
3 years ago
When an employee does the work necessary to remove physical dirt or food residue from a surface, that is referred to as?
bekas [8.4K]
They are referred to as a janitor or a cleaning service. They are the ones responsible of keeping a place in good condition and to make everything neat and dirt free as possible. It could be described above as removing physical dirt or food from the surface is their job description as they make sure that the place is clean, neat and dirt free.
3 0
3 years ago
Which sentence in the passage refers to the "analysis" of a given problem?
GrogVix [38]

Answer:

Last paragraph

Explanation:

Finally, Jeremey has also divided the problem into smaller parts, such as production costs, overheads, downtime expense, repair expenditure, and so on.

7 0
2 years ago
Read 2 more answers
Mickey is a 12-year-old dialysis patient. Three times a week for the entire year he and his mother, Sue, drive 20 miles one way
gavmur [86]

Answer:

The right approach will be "$ 1123.2".

Explanation:

The number of miles to be used will be:

= 40 \ miles \ round \ trip\times  3 \ trips \ per \ week\times 52 weeks

= 6240 \ miles

Now,

The item deduction will be:

= Number \ of \ used \ miles\times 18 \ cents \ per \ mile

= 6240\times 1123.2

= 1123.2 ($)

4 0
3 years ago
PLEASE HELP WILL GIVE BRAINLIEST OT CORRECT ANSWER
FromTheMoon [43]
<h2>Answer</h2>

B. adds up all the income collected by all the sellers.

<h3>Explanation</h3>

Calculating GDP via the income approach of the established approaches, the income generated by all factors of production is the most accurate answer for the Gross Domestic Product (GDP) of a country. This therefore establishes that the income generated by factors in the household in exchange of the services or products they have provided to consumers, represent the value of the total goods and services sold in the economy.


4 0
3 years ago
Read 2 more answers
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