Answer:
Cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold.
Explanation:
Cost of goods available for sale can be described as the <u>maximum amount</u> of inventory, stock, or goods that is possible for a firm to sell during an accounting period. It is the maximum amount because it is not possible for a firm to sell more than the cost of goods available for sale.
The cost of goods available for sale is obtained by adding beginning inventory and net purchases during an accounting period. This can be stated as follows:
COGAFS = BI + NP ............................... (1)
Where;
COGAFS = Cost of goods available for sale
BI = Beginning inventory
NP = Net purchases
At the end of an accounting period, ending inventory is deducted from the cost of goods available for sale to obtain cost of goods sold as follows:
COGS = COGAFS - EI ............................ (2)
Where;
COGS = Cost of goods sold
COGAFS = Cost of goods available for sale
EI = Ending inventory
Rearranging equation (2) and solve for COGAFS, we have:
COGFAS = COGS + EI ........................... (3)
Equation (3) therefore implies that the correct option is "cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold".
The first step in organizing production is planning the process and developing the project budget and schedule, such as rehearsals and performance review.
<h3 /><h3>What is project planning?</h3>
It corresponds to practices that are implemented at the beginning of the project, which will help achieve the objectives, that is, they are actions that direct the management and structure the details of the project.
Therefore, it is essential that in every project there is a focused and aligned planning to the available resources, such as time and needs, so that the objectives are achieved effectively.
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Depreciation Expense $ 4
<h3>What is
Depreciation?</h3>
Depreciation in accounting refers to two aspects of the same concept: First, the actual decrease in the fair value of an asset, such as the annual decrease in the value of factory equipment.
The claim for depreciation on assets used by the assessee for the purpose of business or profession during the previous year. If an asset has been in use for more than 180 days, depreciation of 50% is allowable in that year.
Depreciation in Action - If a company purchases a delivery truck for Rs. 100,000 and expects to use it for 5 years, the company may depreciate the asset at a rate of Rs. 20,000 per year for a period of 5 years.
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Answer:
Accounting profit = $45,000
Economic profit = $5,000
Explanation:
The computation of accounting profit and economic profit is shown below:-
Accounting profit = Sales - External expenses
= $75,000 - $30,000
= $45,000
Economic profit = Accounting profit - Implicit cost
= $45,000 - $40,000
= $5,000
Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive
The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".
The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>
In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.
