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3 years ago

A primary reason that a firm would use average-cost pricing is that it

Business

1 answer:

neonofarm [45]3 years ago

8 0

Answer:

it is very simple and easy to do it.

Explanation:

Companies that use average cost pricing just add markup that they consider reasonable to the average cost of a product, and you have the final selling price of the product.

A disadvantage of using average cost pricing is that t does not consider how costs change as your sales level changes. This method usually works best when the company is able to estimate its total sales ad then use that estimation to calculate the average cost price.

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Which of the following can increase your credit card’s APR

poizon [28]

Paying off the full balance.

As a guidelines, your Credit Card APR will be increased if you are responsible in paying all your credit and show that you are a good user.

3 0

3 years ago

The following accounts relate to SnowGo Corporation at December 31, 2020. Equipment $88,000 Common Stock $20,000 Dividends 8,000

BARSIC [14]

Answer:

Trial Balance of Snow Go Company

Particulars Debit$ Credit$

Equipment 88,000

Common Stock 20,000

Dividends 8,000

Salaries and Wages Payables 2,000

Accounts Payables 22,000

Notes Payables(Short Term) 19,000

Salaries and Wages Expenses 42,000

Utilities Expense 3,000

Accounts Receivables 4,000

Prepaid Insurance 6,000

Service Revenue 95,000

Cash 7,000

TOTAL $158,000 $158,000

5 0

3 years ago

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower t

Elden [556K]

Answer:

International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by outflows of foreign funds, the Fed may not feel compelled to use a tight monetary policy.

Explanation:

A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.

Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.

The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.

7 0

4 years ago

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items

OLEGan [10]

a. The average aggregate inventory value is $336,000.

b. The number of weeks of supply that the firm has is 3 weeks, approximately (2.69 ($336,000/$6,500,000 x 52).

c. The inventory turnover of Sapphire Aerospace for last year was 19.3x.

Question Completion:

Category Part Number Average Value Total Category

Inventory Units per Unit Value Totals

Raw Materials RM-1 20,000 $1 $20,000

Materials RM-2 5,000 5 25,000

RM-3 3,000 6 18,000

RM-4 1,000 8 8,000 $71,000

Work-in-process WIP-1 6,000 10 60,000

WIP-2 8,000 12 96,000 $156,000

Finished goods FG-1 1,000 65 65,000

FG-2 500 88 44,000 $109,000

Total value of inventory $336,000 $336,000

Inventory turnover = Cost of goods sold/Average inventory

= 19.3x ($6,500,000/$336,000)

Thus, the average inventory value is $336,000, while the inventory turnover was 19.3x.

Learn more about inventory turnover here: brainly.com/question/5701250

3 0

3 years ago

If plant assets of a manufacturing company are sold at a gain of $1,000,000 less related taxes of $350,000, and the gain is not

alekssr [168]

Answer:

D. a gain of $1,000,000 and an increase in income tax expense of $350,000.

Explanation:

Given that

The gain is $1,000,000

And, the taxes is $350,000

So here the income statement that disclose the impact is that

There is a gain of $1,000,000 and also at the same time the income tax expense is rise by $350,000

Therefore the option d is correct

hence, the same would be considered

5 0

3 years ago