1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
777dan777 [17]
3 years ago
10

The replacement cost of an inventory item is below the net realizable value and above the net realizable value less a normal pro

fit margin. The inventory item's original cost is above the net realizable value. Under the lower of cost or market method, the inventory item should be valued at:__________
a. Original cost
b. Replacement cost
c. NRV
d. NRV - Profit Margin
Business
1 answer:
taurus [48]3 years ago
4 0

Answer:

Replacement cost.

Explanation:

The term replacement cost or replacement value refers to the amount that an entity would have to pay to replace an asset at the present time, according to its current worth.

In the insurance industry, "replacement cost" or "replacement cost value" is one of several method of determining the value of an insured item. Replacement cost is the actual cost to replace an item or structure at its pre-loss condition. This may not be the "market value" of the item, and is typically distinguished from the "actual cash value" payment which includes a deduction for depreciation. For insurance policies for property insurance, a contractual stipulation that the lost asset must be actually repaired or replaced before the replacement cost can be paid is common. This prevents overinsurance, which contributes to arson and insurance fraud. Replacement cost policies emerged in the mid-20th century; prior to that concern about overinsurance restricted their availability.

You might be interested in
HOW IMPORTANT IS INNOVATION TO ENTREPRENEURSHIP?
faust18 [17]

Answer:

   Successful innovation allows you to add value to your business so that you can increase your profits—if you don't innovate well, your business will plateau. Innovation helps you stay ahead of the competition. With globalization and a rapidly changing market, there are more competing businesses than ever before.

<h2><u>Hope This Helped!</u></h2>

8 0
2 years ago
On December 1, Year 1, El Primero Company purchases inventory from a foreign supplier for 40,000 coronas. Payment will be made i
choli [55]

Answer:

The answer to the question is attached with the document.

Download docx
7 0
3 years ago
Units: Beginning Inventory: 34,000 units, 55% complete as to conversion. Units started and completed: 128,000. Units completed a
liq [111]

Answer:

the cost per equivalent unit of conversion is $3.49

Explanation:

The computation of the cost per equivalent unit of conversion is as follows;

= Total conversion cost ÷ equivalent units

where

total conversion cost is $608,150

And, the equivalent units is

= 162,000 units × 100% + 34,500 units × 35%

= 162,000 units + 12,075 units

= 174,075 units

Now the cost per equivalent unit of conversion is

= $608,150 ÷ 174,075 units

= $3.49 per unit

Hence, the cost per equivalent unit of conversion is $3.49

This is the answer but the same is not provided in the given options

3 0
3 years ago
Which type of bank account is best for everyday transactions
Elena-2011 [213]

Answer:

Checking accounts

Explanation:

They are better for everyday transactions such as purchases, bills and ATM withdrawals.They also Have lower interest. Savings Accounts would be better for storing/Earning interest.

6 0
3 years ago
Read 2 more answers
Which of the following statements are correct concerning the present value of​ $1.00 five years from today discounted at​ 5%? I.
andre [41]

Answer:

1 and 3 option

Explanation:

Which of the following statements are correct concerning the present value of​ $1.00 five years from today discounted at​ 5%?  The present value is equal to​ $1.00 divided by 1.05 to the 5th power and If the discount rate were more than​ 5%, the present value would be smaller.

To calculate present value:The present value is equal to​ $1.00 divided by 1.05 to the 5th power, Therefore

Present value= the future value/(1+r)n    where n=5, r= 0.005 or 0.006

which will be 1/(1+0.05)5

                           =0.78

Note:The present value interest factor for a single sum is always equal to or less than 1 and the further in time, the smaller the present value interest factor

6 0
3 years ago
Read 2 more answers
Other questions:
  • How does a local water budget differ from the water budget of the whole earth?
    15·1 answer
  • In using the high-low method, the fixed cost is determined by subtracting the total cost at the high level of activity from the
    13·1 answer
  • The Physical Inventory Worksheet is used when: Multiple Choice inventory items are physically placed in the warehouse All of the
    5·1 answer
  • Green Haven is an organization whose earnings are exempt from federal and state income taxes. Individuals who contribute money t
    9·1 answer
  • If the price of chicken feed decreases, the supply of chicken nuggets will shift
    12·1 answer
  • Michael Anderson is starting a computer programming business and has deposited an initial investment of $15,000 into the busines
    14·1 answer
  • Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i
    6·1 answer
  • The optimal risky portfolio can be identified by finding: I. The minimum-variance point on the efficient frontier II. The maximu
    14·1 answer
  • Why do we need to consider the important points in making the salad?.​
    5·1 answer
  • Bababooey.................................................................
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!