Answer:
The answer is: B) purchase records are not maintained.
Explanation:
There are two methods for estimating inventory costs:
- Gross Profit Method
: uses the information from the income statement. If operating conditions remain similar, the proportion between total sales, profits and COGS should be similar (lets say profit is 30% and COGS is 70% of total sales). You can estimate your inventory costs by using the information on total sales.
- Retail Method: It is used mostly by merchandising firms (retailers) that have consistent mark-ups. You have to determine the proportion between cost and retail price (lets say the COGS is 80% of the retail price). Then if you are given the retail inventory, you can determine the COGS using the proportion determined previously.
Answer:
8%
Explanation:
The formula to compute the cost of common equity under the DCF method is shown below:
= Current year dividend ÷ price + Growth rate
where,
Current year dividend is $2
Price is $40
And, the growth rate is 3%
Now put these values to the above formula
So, the cost of equity would equal to
= $2 ÷ $40 + 3%
= 0.05+ 0.03
= 8%
Answer:
(D) the principle of comparative advantage does not apply to countries with extremely limited resources.
Explanation:
The statement a, b and c are trues, the cost of opportunity reduced because you have more products available, it reduces the price of different prices and services, the trade makes that the nations depend and work together to improve their benefits, usually the trade doesn't benefits all the citizens because some industries improve their performance an other don't it depends of the market.
All the resources al limited, but the principle of the comparative advantage, says that the countries have to put the resources and efforts in a specific economic activities where they are better that other countries, and there are many products that a country could make
Answer: Option (B)
Explanation:
Fiat money is referred to as the currency which tends to have no intrinsic value and thus has been further entrenched as money. This process is often carried out by the federal government. This particular type of money does not tend to have the use of value, and only has the value since the authority i.e. the government tends to maintains its value.
