Answer: True
Explanation;
Generally, manufactured goods cost more than the commodity goods that they were manufactured from due to the value that has been added to them. This is what the Prebisch-Singer hypothesis argues, that commodity prices decline overtime in relation to manufacturing good prices.
This is a fate that has befallen many developing countries as many of them export commodity goods to developed countries who then add value to them, turning them into manufactured goods and then selling them back to developing countries at a higher price thereby negatively affecting their balance of trade.
Answer:
Management by exception
Explanation:
This is a practice of examining the financial as well as operational results of a business and bringing to management only those differences that show a significant difference between the budgeted and actual amounts. This allows managers to focus on the highly important variances that can affect the growth and profitability of a company significantly. This concept, can however be fine-tuned where small variances are shown but to low-level managers whilst the senior managers will look at the large variances.
Answer:
Total= 3,120 units
Explanation:
Giving the following information:
production budget:
January= 3,000 units
February= 4,200 units
March= 5,000 units
The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.
Beginning inventory= 300 units.
To calculate the production for any month, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
<u>January:</u>
Sales= 3,000
Desired ending inventory= (4,200*0.1)= 420
Beginning inventory= (300)
Total= 3,120 units
Answer:
$ 244 million
Explanation:
Calculation for how much has GE saved in taxes by choosing LIFO over FIFO method for costing inventory
Tax rate Amount (In millions)
LIFO $ 10,315.00 35% =$ 3,610.25
FIFO $ 11,012.00 35% =$ 3,854.20
Savings in taxes $ (697.00) $ (243.95)
Hence,
Savings in taxes=$ 3,610.25 million-$ 3,854.20 million
Savings in taxes=($243.95 million)
Savings in taxes=($ 244 million) Approximately
Therefore the amount that GE saved in taxes by choosing LIFO over FIFO method for costing inventory will be $ 244 million
