Answer:
A) It will increase.
Explanation:
As we know that the safety stock is directly proportional to the lead time that means if the safety stock rises than the lead time is also increased and if the safety stock decreased than the lead time is also decreased.
So, in the case when the lead time rises so expected on hand would also increased
hence, the correct option is A
And, the rest of the options are incorrect
<span>An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of a business. A business is economic system that includes commercial and industrial activities through production and sales or exchange of goods and services.
</span><span>In every business there are investment and customers . In this case the investment is buying antiques and the customers are people interested in antique works. </span>
The answer is True because it depends on both
Answer:
The answer is B.
Explanation:
FIFO inventory cost method will yield the highest taxable income during times of inflation or period of rising price.
FIFO is First in First out i.e the inventory that was purchase first will go out first. This method reflects the current market price because last inventories bought during inflation are part of the ending inventories. Ending inventories are high, cost of sales are low and gross profit is high.
Because gross profit is high, high tax will be charged
Answer:
The manufactured overhead was under-estimated.
Explanation:
Giving the following information:
The actual manufacturing overhead costs incurred were $515,000.
Estimated Manufacturing overhead was $500,000.
Overhead allocation is the distribution of indirect costs to produced goods. When the administration has undervalued and under-funded the amount of money needed for non-production costs, they have under-allocated overhead.
<u>Over applied manufacturing overhead:</u>
<u></u>
Applied overhead>Actual overhead
<u>Under applied manufacturing overhead:</u>
Applied overhead<Actual overhead
In this exercise:
Actual manufacturing overhead - Estimated Manufacturing overhead= 515000- 500000= 15000
The manufactured overhead was under-estimated.
