All categories

3 years ago

In applying LCM, market cannot be:

Business

1 answer:

arsen [322]3 years ago

5 0

Answer:

The correct option is A,market cannot be less than net realizable value minus a normal profit margin

Explanation:

In determining the lower of cost and market value,the cost of the item of inventory is compared with market facing prices.

The market facing prices are the net realizable value and replacement of the item,in essence lower of net realizable and replacement cost is compared with cost of the item in order to determine the value at which the inventory is to be valued.

Overall,the lower of net realizable and replacement cost should not be lower than the net realizable value minus a normal profit margin

You might be interested in

Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sal

kaheart [24]

Answer:

Jasper Company

Cash Receipts Budget for April, May, and June:

April May June Total

Cash Sales 30% $157,500 $160,500 $168,000 $486,000

Credit Sales 70% 400,000 367,500 374,500 1,142,000

Total $557,500 $528,000 $542,500 $1,628,000

Explanation:

1. Cash Receipts Budget shows the estimated cash receipts from customers and other sources.

2. Calculations:

a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500. The difference of 70% is received in May.

b) Sales received on account for April = 100% of Accounts Receivable = $400,000.

c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500. The difference of 70% is received in June.

d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000. The difference of 70% is received in July.

3 0

3 years ago

What must profit-seeking entrepreneurs do in order to be successful?

Nostrana [21]

To put it simply, they have to develop a product that make people want to pay to acquire it.

Sellable product usually either :
- able to make people happy ( such as movies, music, Delicious food, etc) or
- Able to make people's life become easier ( such as Gadgets, consultation service, etc)

8 0

4 years ago

Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods sold $180,000 Sales returns $50,000

sesenic [268]

Answer:

$100,000

Explanation:

The computation of gross profit is shown below:-

Gross profit = (Sales revenue - Sales return - Sales discount) - Cost of goods sold

= ($350,000 - $50,000 - $20,000) - $180,000

= $280,000 - $180,000

= $100,000

Therefore we simply applied the above formula for determining the gross profit

4 0

3 years ago

volume_upclosed_captiondescriptionfullscreen According to Mikey, the founder of Holden Outerwear, manufacturing products at five

Ad libitum [116K]

Answer: a. increased paperwork at every step of the shipping process.

Explanation:

There is no excerpt attached but this should be the answer.

Having five different factories in China means that Holden Outwear would have to transport things to and fro all five factories including raw materials, intermediate goods and finished goods.

This represents a lot of shipping and shipping comes with paperwork. It would therefore be no surprise if the Holden Outwear is having to go through the bane of increased paperwork for manufacturing at five different factories.

6 0

3 years ago

Which of the following is likely to occur as the result of the law of diminishing marginal utility? A. Petra's utility from he

Rus_ich [418]

Answer:

The correct answer is option C.

Explanation:

The law of diminishing marginal utility means that keeping other things at constant the marginal utility derived from the consumption of a commodity goes on declining with each additional unit of the commodity.

So, the marginal utility from the first unit will be highest, that from second unit will be lesser, that from third even lower and so on.

In the examples given above, Wesly's case is most applicable to this.

So, option C is the correct answer.

4 0

3 years ago