True. <span>The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory. Holding costs are costs that happen when the inventory stays put and does not sell. The costs are calculated into the inventory costs along side of ordering and shortage costs. Holding costs can include the goods being damaged or spoiling due to the length of being held. Since they can be held for 5 days or 100 days (example) the total cost that is held depends on the length the items were held for. </span>
Answer:
3. The transaction Analyze the transaction, enter transaction in a journal, transfer journal information to ledger accounts.
Explanation:
According to accounting recording process for transactions the sequence is as follows:
1. Prepare Transaction
2. Analyze the the transaction
3. Enter the transaction in the journal
4.Transfer it to ledger accounts
5. Prepare trial balance
6. Prepare financial statements
So the option 3 is correct.
Answer:
B. List Operational Costs
Explanation:
Explanation:
I do not think that is true even considering a linear cost of every 4 pairs of shoes
Answer:
Please find the detailed answer as follows:
Explanation:
Step 1. Given information.
Carrying amount 310.000
Fair Value 160.000
Step 2. Formulas needed to solve the exercise.
Impairment loss = Carrying value - Fair Value
Step 3. Calculation.
Impairment loss = $310.000 - $116.000 = $194.000.
Step 4. Solution.
The carrying amount of $310.000 > fair value of $160.000. To measure the impairment loss, just do CV-FV. hence $310.000 - $116.000 = $194.000.
Loss on impairment $194.000
Patent $194.000