Due to the greatest cost of goods sold, the LIFO (Last In Last Out) technique displays the lowest net profitability. Compared to the other techniques of inventory valuation, the cost of goods sold for the LIFO approach is the greatest.
<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>
The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.
<h3>Which method of inventory has the lowest income tax rate?</h3>
LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.
<h3>In an era of inflation, which inventory method results in the lowest income tax?</h3>
Due to increasing COGS, LIFO leads to reduced net income (and taxes). However, under LIFO during inflation, there are fewer inventory write-downs. Results from average cost are in the middle of FIFO and LIFO.
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Answer:
The labor would increase
Explanation:
When the government decides to lower the income tax in the coming year, which is financed by the findings of a large as well as a previously unknown warehouse for real goods, then there would be an increase in the labor as the reduction in the income tax would cause more and more investment. And thus organizations and firms increase their efficiencies and create more and more output by increasing the labor.
Answer: Jessica's implicit costs are $46,000.
Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.
In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are:
Answer:
5.5%
Explanation:
The underwriting spread = $0.66 per share
the percent underwriting spread = ($0.66 / $12) x 100 = 5.5%
The underwriting express is the fee that the underwriter of the stock (usually an investment bank) will charge the company for carrying out the transaction, either an IPO or simply issuing more stocks.
