Answer:
A. USD 5,180/-
Explanation:
In the actual method of inventory valuation, the inventory reaming and the COGS (Cost Of Goods Sold) is measured after each purchase or sale of a transaction. So the COGS and the remaining value of the inventory is known all the time.
Formula:
- Gross margin is equal to Sales minus COGS
Answer:
Difference between traditional costing method and activity based costing method is mentioned as follows:-
- Traditional costing method is the technique in which products are implemented with indirect cost according to overhead rate whereas activity based costing relatively assign cost to product according to their activity in consumption.
- Traditional costing has easy implementation at low cost but activity based costing is costly and complex.
- Accuracy of traditional costing is low as compared with activity based costing
Answer:
ROE= 6%
Explanation:
Return on equity is the measure of a business profitability as related the owner's equity. It shows how well a company is making profits on shareholder funds.
Return on investment (ROE)= Profit Margin * Capital intensity ratio * Equity multiplier
To calculate the profit margin
Profit margin= Net income/Gross Income
Profit margin= 42,800/947,100
Profit margin= 0.045
Substitute in formula for ROE
ROE= 0.045* 0.87* 1.53
ROE= 0.06= 6%
