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3 years ago

13

A company can choose to use FIFO inventory costing methods for the financial statement and can elect to use either LIFO or FIFO

on the tax return, however if you use LIFO for books then you must use LIFO on the tax return
A. True.
B. False.

1 answer:

Oduvanchick [21]3 years ago

8 0

Answer:

A. True.

Explanation:

Companies can and often do use different costing methods for financial reporting and tax reporting. The only exception is when LIFO is used for tax reporting; in this case the IRS requires that it also be used in financial statements.

LIFO assigns the highest amount to cost of goods sold - yielding the lowest gross profits and net income , which also yields a temporary tax advantage by postponing payment of some income tax.

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Determine the profit-maximizingLOADING... prices when a firm faces two markets where the inverse demand curves are Market A: p

Gala2k [10]

Answer:

Market A: $P_{A} = 20.00$

Market B: $P_{B} = 20.00$

Explanation:

Market A: $P_{A} = 80 - 2Q_{A}$ ........................ (1)

Market B: $P_{B} = 60 - 1Q_{B}$ ........................ (2)

MC = m = 20 ............................................... (3) for both markets

For Market A:

Profit maximizing price can be obtained when $P_{A} = m$

Therefore, we have:

$80 - 2Q_{A} = 20$

$80 - 20 = 2Q_{A}$

$60 = 2Q_{A}$

$Q_{A} = \frac{60}{2}$

$Q_{A} = 30$

Substituting 50 for $Q_{A}$ in equation (1), we have:

$P_{A} = 80 - 2(30)$

$P_{A} = 80 - 60$

$P_{A} = 20.00$

For Market B:

Profit maximizing price can be obtained when $P_{B} = m$

Therefore, we have:

$60 - 1Q_{B} = 20$

$60 - 20 = 1Q_{B}$

$40 = 1Q_{B}$

$Q_{B} = 40$

Substituting 80 for $Q_{B}$ in equation (2), we have:

$P_{B} = 60 - 1(40)$

$P_{B} = 20.00$

8 0

4 years ago

A raise in the price of a product

Sergio039 [100]

I would say 4

Hope this helps!!

4 0

3 years ago

Lucy and Everly, a clothing retail company, wants to collect secondary data on the buying behavior of teenage customers in its n

MrRissso [65]

The action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

Marketing research means a process of gathering, recording, analyzing and drawing conclusion on collected data from potential customers of a product to facilitate decision making.

Main purpose of the marketing research is to provides information which are relevant for decision making in the firm.

A marketing research data are also provided by marketing research firms to firms who need them.

In conclusion, the action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

Read more about Marketing research

<em>brainly.com/question/24967957</em>

5 0

2 years ago

The response students would have given if they had described the typical office setting would have been _____.

zhuklara [117]

An office building is your answer

4 0

4 years ago

Read 2 more answers

If consumers view the output of any firm in a market to be identical to the output of any other firm in the market and the marke

hichkok12 [17]

Answer:

B. will be horizontal

Explanation:

A type of market where output is identical to the output of any other firm in the market and the market has many firms and transaction costs are low is the perfect competition.

The demand curve is horizontal because in this type of market, price is set by the forces of demand and supply. Buyers are sellers are price takers and they don't have any influence over prices. At the going market price, sellers sell all the quantities of their products.

But if they attempt to increase price, quanitity demanded would fall to zero as consumers would easily shift to other sellers. Also, there would be no incentive to reduce price because they would be earning a loss.

I hope my answer helps you

7 0

3 years ago