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katrin [286]
3 years ago
15

When inventories go down in value, accountants adjust the value of the inventory that is recorded on the balance sheet. Sometime

s inventory goes up in value. Do accountant's ever adjust the value of inventory upwards? What are the general guidelines that accountant's follow in recording inventory value?
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
4 0

Answer:

Accountants do not adjust the value of inventory upwards.  The general guidelines in recording inventory value are to recognize the ending inventory value at the lower of cost or market value and to ensure that transactions are recorded in accordance with the conservatism principle of generally accepted accounting principles.

Explanation:

The conservatism principle requires that all probable losses are recognized as soon as they can be reasonably estimated, while gains should be recognized only when they are fully realized.  The lower of cost or market value (LCM) method states that inventory should be recorded at the lower of either the historical cost or the market value.  The LCM is in line with the conservatism principle.

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When businesses raise the price of a needed product or service after a natural disaster, this is known as price gouging. Price gouging is something that businesses do after a natural disaster when they know consumers are going to need a specific product or service so they raise the price because they know people are going to buy it anyways. An example of this is when they raise gas prices after a natural disaster, knowing people still need gas.

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To motivate employees, several major department stores are experimenting with incentive compensation plans, although compensatio
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3 years ago
A furnace repair team services a design capacity of 6 furnaces per day with an effective capacity of 5 furnaces per day. What is
VashaNatasha [74]

Answer:

66.7%

Explanation:

Given that,

Design capacity = 6 furnaces per day

Effective capacity = 5 furnaces per day

Efficiency ratio if it repairs an average of 4 furnaces per day:

= (Actual capacity ÷ Possible capacity) × 100

= (4 per day ÷ 6 per day) × 100

= 0.667 × 100

= 66.7%

Therefore, the efficiency ratio is 66.7 percent.

6 0
2 years ago
An increase in interest ratesA. increases investment spending on​ machinery, equipment,​ factories, consumption spending on dura
RoseWind [281]

Answer:

The correct answer is option C.

Explanation:

An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and​ factories to decline.  

Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.  

The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.

8 0
3 years ago
What is meant by marketing mix and why do the 7 Ps comprise the marketing mix?
FinnZ [79.3K]

Answer:

a. The marketing mix is a set of actions or strategies that are implemented for the purpose of promoting a product or brand. This is usually done to increase sales by expanding the target customers.

b. The 7 Ps comprise the marketing mix since they are specific rules that can be used to assess how the product is doing in the market in terms of sales. They can help determine areas that need evaluation and also provide for a way to find solution to the problem.

Explanation:

The marketing mix is a set of actions or strategies that are implemented for the purpose of promoting a product or brand. This is usually done to increase sales by expanding the target customers.

The 7 Ps are the specific guidelines that one can utilize to achieve higher sales. They are as follows;

1. Product : this is every improvement made on the product to increase it's quality above the competition

2. Prices : the prices should be adjusted in such away that it shouldn't be too high to reduce the number of customers, neither should it be too low to cause losses

3. Promotion : this is the way in which you provide information about your product to the customers and at the same time get feedback according to the type of questions the customers ask.

4. Place : in the marketing mix, location of where the product is very important. The location should be in a place where the product is highly visible and also very accessible.

5. Packaging : the product has to be packaged in a way that is visually attractive most people make judgement on a product from how the product looks.

6. Positioning : one needs to know also how the product is viewed by the customers in comparison to other products from the competition.

7. People: the product is to be made by people, sold by people and bought by people. This means that there has to be considerable focus on the people at all levels of engagement.

The 7 Ps comprise the marketing mix since they are specific rules that can be used to assess how the product is doing in the market in terms of sales. They can help determine areas that need evaluation and also provide for a way to find solution to the problem.

3 0
3 years ago
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