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3 years ago

When are product costs included on the income statement?

Business

1 answer:

ioda3 years ago

4 0

Answer:

The correct answer is D. When the product is sold and delivered to a customer.

Explanation:

It is recognized at the time of the sale, because the company receives an income as a result of the recovery of its cost plus the established profit margin. When the sale has not been made, it remains within the product inventories until the sale occurs and becomes an operational income.

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Taco Quatro can make their entire menu out of their fantastic four Mexican ingredients, cheese, meat, beans and tortillas.

devlian [24]

Answer:

Explanation:

Objective of Taco Quatro is to maximize sales. To do this they must sell maximum number of each item in the menu.

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3 years ago

On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method?

Misha Larkins [42]

Answer: The ending inventory is $43,500

Explanation:

Cost. Retail

$ $

Beginning inventory. 125,000 166,667

Add :Purchases 235,000 313,333

-------------------- -----------------------

Cost of good available for sale 360,000 480,000

Cost to retail ratio

360,000 ÷ 480,000

= 0.75

Cost. Retail

$ $

Cost of good available for sale 360,000 480,000

Less:Sales. 230,000 250,000

360,000. 172,500

187,500

-------------------- ----------------

(417,500) 58,000

Ending inventory × 0.75 (58,000 × 0.75) = 43,500

Cost to retail ratio.

Ending inventory. $43,500

3 0

4 years ago

A promissory note can best be described as

sergejj [24]

A promissory note is a promise to pay someone back, it can best be described as a loan.

4 0

3 years ago

Read 2 more answers

What does it mean for a credit to transfer

alexandr1967 [171]

Answer:

this is an amount of payment in which an amount of money or credit is directly transfered to another account

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3 years ago

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Jiffy Cake Mix Company developed a new brownie mix that is much improved over its current brownie mix. When a sales representati

son4ous [18]

Answer: Slotting allowance

Explanation: Manufacturers or producers may often have to contact retail stores, supermarkets and other retail channels when marketing their product, this often comes at a cost, the amount manufacturers are being charged by this retail stores in other to keep or stock the company's product in its store, inventory or warehiuse is called the sticking or Slotting allowance. In the context above, the fee demanded by the supermarket which sparked protest from jiffy's representative is called the stocking or Slotting allowance.

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4 years ago