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ryzh [129]
3 years ago
11

By using the LIFO method of inventory accounting, a company like Exxon: a) will report lower earnings during rising prices of in

puts and pay lower taxes. b) will report higher earnings during rising prices of inputs and pay higher taxes. c) will report its inventory on its balance sheet at current prices. d) will overvalue its inventory on its balance sheet when prices of inputs are rising.
Business
1 answer:
romanna [79]3 years ago
7 0

Answer:

a) will report lower earnings during rising prices of inputs and pay lower taxes

The reason for this is that when input prices are rising, the inventory bought last is the most expensive and the inventory bought first is the least expensive. So when using LIFO during rising prices of inputs the company will report a higher cost of goods sold as the inputs bought later cost more. This will lower their earnings and taxes.

Explanation:

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At the beginning of 2018, ABC began offering a 1-year warranty on its products. The warranty program was expected to cost ABC 4%
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Answer:

$7.2 million

Explanation:

Calculation for the amount of warranty expense on Angel's 2016 income statement

Using this formula

Warranty expense =Net sales ×Expected percentage of net sales

Let plug in the formula

Warranty expense=$180 million×4%

Warranty expense=$7.2 million

Therefore the amount of warranty expense on Angel's 2016 income statement will be $7.2 million

3 0
3 years ago
the country of doomsville is currently in a recession. the government of doomsville, in an effort to maintain its tax revenues i
harina [27]

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This policy would likely make Doomsville's recession worse.

Explanation:

Hope this helps, Have a great morning/night! :D

6 0
3 years ago
Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable
Fiesta28 [93]

Answer:

$3,000 favorable

Explanation:

The computation of actual and budgeted costs is shown below:-

                    Budgeted                                     Actual

                    (18,000 units)                             (18,000 units)

Variable        $54,000

                    ($48,000 ÷ $16,000) × $18,000

Fixed            $270,000

Total              $324,000                                   $321,000

Therefore, Actual cost is less than Budgeted, so the difference between actual and budgeted costs is $3,000 is favorable.

3 0
4 years ago
Who are the two key players in a circular flow model? :
Inessa [10]
The answer is C households and business
8 0
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the relatively narrow strategic initiatives and approaches for managing key operating units (plants, distribution centers, geogr
svetlana [45]

Answer:

No doubt the question is pointing at the term described,which is operating strategies concern

Explanation:

Operating strategies concern involves action plans developed at the operation strategic level to align business resources and capabilities to the long-term goals of the business.

Majority of the action plans initiated at the operational side of the business are short-term in nature,hence operational strategies concern aimed at bridging the gap between the long-term goals of top management and the short-term objectives of junior managers by developing long-term plans for operations.

Top management use certain performance measures to gauge the progress made in operating strategies concern.

4 0
3 years ago
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