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2 years ago

What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?

Business

1 answer:

Taya2010 [7]2 years ago

5 0

Answer:

The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.

Explanation:

The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.

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At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for

Shkiper50 [21]

Answer:

335.43 million gallons

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

PED = -1.9% / 10% = -0.19, very inelastic

expected price increase $0.40

% change in price = ($3.45 - $3.05) / $3.05 = 13.11%

% change in quantity demanded:

-0.19 = D / 13.11%

D = 2.49%

quantity demanded will decrease by 2.49%, from 344 million gallons to 335.43 million gallons

8 0

2 years ago

You now need to plan for the holiday rush! When the holidays hit, Trader Dan's has a massive increase in customers coming to the

jasenka [17]

Answer: dan needs a faster pace

Explanation:

8 0

2 years ago

Which of the following would an economist most likely classify as a need?. A.gasoline for a florist's delivery truck.. B. a coll

In-s [12.5K]

Flourist gas truck answer

7 0

3 years ago

In her spare time, Sharon is the chair for a local nonprofit organization. The project committee is attempting to determine what

maxonik [38]

Answer: (D) Competing

Explanation:

According to the given question, Sharon is one of the chair-person of a local non-profit organization and usually in her free time she selected the various types of ideas, thoughts and then forced her ideas on the other organizational members.

So, on the basis of the given concept she is using the competing approach to conflict as this type of approach is typically used for making quick decisions for the purpose of resolving various types of problems or issue is an organization. This is also known as the conflicting management style.

Therefore, Option (D) is correct answer.

3 0

2 years ago

On January 1, 2020, Korsak, Inc. established a stock appreciation rights plan for its executives. It entitled them to receive ca

kykrilka [37]

Answer:

$570,000

Explanation:

Missing question: <em>"On December 31, 2022,50,000 SARs are exercised by executives. What amount of compensation expense should Korsak recognize for the year ended December 31, 2020"</em>

Amount of compensation expense = [(33-20)*120,000*3/4] - [(30-20)*120,000*2/4]

Amount of compensation expense = [13*120,000*3/4] - [10*120,000*2/4]

Amount of compensation expense = 1,170,000 - 600,000

Amount of compensation expense = $570,000

So. the amount of compensation expense that Korsak should recognize for the year ended December 31, 2020 is $570,000.

8 0

2 years ago