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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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WILL GIVE MEDAL NEED HELP ASAP
pentagon [3]

Answer:

The correct answer is (A) Penetration pricing.

Explanation:

In this type of pricing, a product is initially priced low to quickly reach a large part of the market and to encourage the word of mouth marketing from consumers. This strategy works with the expectation that customers will be attracted to the new brand due to the low price. But in the case of batteries, the customer compares quality with a high price (Auger et al., 2010). So, this will not be considered as a successful pricing approach from Energizer.

Reference

Auger, P., Devinney, T. M., Louviere, J. J., & Burke, P. F. (2010). The importance of social product attributes in consumer purchasing decisions: A multi-country comparative study. International Business Review, 19(2), 140-159.

7 0
3 years ago
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, Januar
drek231 [11]

Answer:

$31,000

Explanation:

Calculation for the cash received from Dividend

Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable

Hence,

Using this formula

Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable

Let plug in the formula

= 3,100+32,300-4,400

=31,000

Therefore the amount of cash received from dividend will be $31,000.

Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.

4 0
3 years ago
What is the role of the Federal Reserve in the U.S. economy?
lys-0071 [83]

Answer: The correct answer:

A. Managing monetary policy.

5 0
2 years ago
Sinh viên hãy chứng minh rằng “Việc triển khai thực hiện mục tiêu chiến lược dài hạn về doanh thu của ABC đến năm 2025” có liên
ra1l [238]

Answer:

jh

Explanation:

3 0
3 years ago
John Fare purchased $6,000 worth of equipment by making a $1000 down payment and promising to pay the remainder of the cost in s
vesna_86 [32]

Answer:

C $ 596.39

total payment          7,156.68

Interest expense     2,156.68

Explanation:

6,000  -  1,000 = 5,000 amount to finance

We will calcualte the cuota of an annuity of 6 years with semianual payment at 12% annual rate.

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $5,000.00

time   12 (6 years times 2 payment per year)

rate            0.06 (12% annual we divide by 2 to get semiannual)

5000 \times \frac{1-(1+0.06)^{-12} }{0.06} = C\\

C $ 596.39

The total amount paid will be the cuota times the time of the loan:

Total amount paid

596.39 x 12 = 7,156.68‬

The interest will be the difference between the total amount paid and the principal of the loan

Interest paid

total payment          7,156.68

principal                 (5,000)

Interest expense     2,156.68

7 0
3 years ago
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