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marta [7]
4 years ago
11

Assuming periodic inventory procedure, what effect would an understatement of ending inventory have on the different items on th

e financial statements?
Business
1 answer:
Serjik [45]4 years ago
5 0

Answer:

The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

Explanation:

The relationship between the elements of inventory in a financial statement is as shown below,

Opening balance + purchases - cost of goods sold = closing balance

As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.

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Under absorption costing, a company had the following unit costs when 8,000 units were produced. Direct labor $ 8.50 per unit Di
Dimas [21]

Answer:

$24,25

Explanation:

Cost per unit (Variable Costing) = Variable manufacturing costs

                                     = Direct Materials + Direct Labor + Variable Overheads

                                     =  $ 9.00+$ 8.50+$ 6.75

                                     = $24,25

Therefore, the total production cost per unit under variable costing if 25,000 units had been produced is $24,25

8 0
4 years ago
Which term refers to the first level of a product, which depends on the customer value it generates?
zmey [24]

Answer:

B. core benefit

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

<em>Hence, the term that refers to the first level of a product, which depends on the customer value it generates is generally referred to as a core benefit. For example, a hotel provides a comfortable and convenient bed to spend the night (sleep) when you travel for a vacation. </em>

4 0
3 years ago
How would the issuance of common stock for cash affect the accounting​ equation?
shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

    To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect    + Increased

Therefore, the cash account and the common stock is increased.

3 0
3 years ago
When people buy more of a certain good as they get more money, this good<br> is considered
MakcuM [25]

Answer:

Consumer goods

Explanation:

8 0
3 years ago
Read 2 more answers
Reasons for unemployment? ​
aev [14]

Answer:

1.Slow Economic Growth

2.An Increase in Population

3. Slow Growth of Industrialisation

8 0
3 years ago
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