Answer:
a. $5,850
Explanation:
Under the LIFO Method, the cost of good sold equals to
= January 28 units × cost per unit + Remaining units × cost per unit
= 100 units × $24 + 150 units × $23
= $2,400 + $3,450
= $5,850
Since the firm has sold 250 units, so out of which 100 units sold at a price of $24 and the remaining 150 units sold at a price of $23
Answer:
I. All cost allocation bases used in ABC systems are cost drivers.
III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and-effect relationship with the activities performed.
Explanation:
I. is TRUE since the basis of ABC costing is determining, quantifying, and using cost drivers to allocate overhead costs.
III, is TRUE since the advantage of ABC costing is allocating costs based on cause and effect relationships.
II. ABC systems are useful in manufacturing, but not in merchandising or service industries. ⇒ FALSE
- ABC costing can also be used for merchandising and service industries, although, it is mostly used in manufacturing businesses.
Answer:Equity multiplier=1.6
Explanation:
Debt equity ratio is given as debt/equity , Therefore
Debt = Debt equity ratio X Equity
=0.60 x $486,000
= $291,600
The Total assets given as Liability(debt+equity) will now be
=$291,600+$486,000
=$777,600.
Therefore Equity multiplier, Total assets/Total equity
=(777,600/486,000)=1.6
Answer:
The company is announcing an impending merger
In the long run, imports will most likely be paid for with
exports