Inventory costing methods rely heavily on assumptions about the flow of costs. The most widely used inventory valuation method is the FIFO method.
FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Specific Identification, and Weighted Average Cost are the 4 major Inventory costing methods. If your inventory costs are steady or increasing, LIFO is the better option. Businesses with bigger inventories and rising costs appreciate how LIFO reduces profits and taxes while increasing cash flow. If your inventory costs are decreasing, FIFO is the better option.
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Answer:
Employer should withheld $1,643 from Baker's salary
Explanation:
Baker earned $113,300 in 2012. As on 2012, FICA tax rate withheld from employee's salary is 7.65% that constitutes 4.5% of social security, 1.45% of medicare taxes and 2% additional for employees whose wages exceed $18,350.
The gross income base for social security part has increased in 2012 to $110,100. This is not applicable for medicare tax of 1.45%.
Here, Baker's salary of $113,300 is above social security limit, so his income will not be withheld for social security. However, 1.45% of his salary will be withheld for medicare tax.
Therefore, $1,643 that is 0.0145×113,300 is withheld from his salary.
<span>The fact that people are willing to save money for future purposes describes the function of money as a store of value.
Money is generally accepted as a form of payment for any transaction. This makes it possible for people to measure value of services or a goods easily by expressing their value in form of money make it possible for us to account for anything (good and services) in our books of record. This characteristic of money gives it value and ability to be saved or stored as a liquid asset for meeting any emergencies, debts or future buying opportunities for good and services among other needs. Hence, Money can therefore act as a medium for storage of value.</span>
Answer:
As cost avoidance or cost reduction before manufacturing, value engineering is strongly related to target costing. Value analysis is the process of avoiding or reducing the cost of a product that is already in production.
Answer:
$ 347,818
Explanation:
Intrinsic value of property = Net operating income / Capitalisation rate
WHILE
Net operating income = Earning from property - Operating expenses which is related to property
Earning from Property =
($8600+$200)*12*85%
=$8800*12*0.85
=$89,760
Operating expenses;
Property tax $10,000
Insurance $3,500
Advertising expenses $1,500
Maintenance cost $12,500
Interest expenses $24,00
Total $51,500
Net operating income =$89,760-$51,500
=$38,260
Net operating income for perpetuity
Intrinsic value = 38260/0.11
=$ 347,818
Therefore the intrinsic value of the property is $ 347,818
