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Aleksandr [31]
3 years ago
11

The management of Milque Corp. is considering the effects of various inventory-costing methods on its financial statements and i

ts income tax expense. Assuming that the price the company pays for inventory is increasing, which method will: (a) provide the highest net income
Business
1 answer:
nignag [31]3 years ago
4 0

Answer:

Milque Corp.

FIFO will provide the highest net income when the price of inventory is increasing.

Explanation:

The Generally Accepted Accounting Principles recognize four main methods to compute Cost of Goods Sold and Ending Inventory for a period.  They are:

First In, First Out (FIFO): This is based on the assumption that companies sell first the inventory that they bought first.

Last In, First Out (LIFO):  This method assumes that companies sell first the inventory that they bought last.

Weighted Average Cost (WAC): This inventory method assumes that companies average the costs of inventory and how much they sell over the period by dividing the cost of goods available for sale by the total physical inventory units.

Specific Identification: This method does not make any assumptions.  It directly identifies the product being sold and prepares costing calculations based on the specific inventory items.

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According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all empl
harkovskaia [24]

Answer:

1. None of the above

2. All of the above

Explanation:

According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all employees in the department, (2) be either low or high management involvement regardless of the circumstances, and (3) not be influenced by subordinates' expectations. Which statements are correct?

<u>NONE OF THE ABOVE</u>

<u>The Path-Goal theory of leadership stipulates that managers should adapt a leadership style that is employee oriented for the purpose of organizational goal achievement. </u>

<u />

This is an ability issue. When a manager's performance deteriorates because manager's ability has deteriorated. The steps to be taken will be in the order below:

(1) Determine if the resources are adequate,

(2) retrain the individual, and

(3) redesign the job.

<u>All of the above steps are correct in that order</u>

3 0
3 years ago
On January 15, the end of the first pay period of the year, North Company’s employees earned $26,000 of sales salaries. Withhold
Contact [7]

Answer: Please see the  explanation column

Explanation:

Journal entry to record North Company’s salaries expense and related liabilities.

Date            Particulars                        Debit                 Credit

Jan, 15 Sales salaries expense      $26,000

     To  FICA Social Security taxes

payable at 6.2%                                                                $1,612

     To FICA Medicare taxes

payable at 1.45%                                                                 $377

  To federal income taxes payable                                 $2,000

To employee medical insurance payable                           $429

To  employee union dues payable                                      $180

 Sales Salaries Payable                                                      $21.402

Working :

FICA Social Security taxes = 6.2% x $26,000 = $1,612

FICA Medicare taxes = 1.45% x 26,000 = $377

Salary payable =Sales salaries expense -(FICA Social Security taxes payable + FICA Medicare taxes payable + federal income taxes payable+medical insurance payable  +employee union dues payable  ) = 26,000 - (1612+377+2000+429+180)=$21,402.

6 0
3 years ago
. What do you understand by term “advertising”. What would happen if ethical advertisement is not followed by businesses? Explai
Blababa [14]

Answer:

Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of communication between a seller and a buyer.

Thus ethics in advertising means a set of well defined principles which govern the ways of communication taking place between the seller and the buyer. Ethics is the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points which don’t match the ethical norms of advertising.

An ethical ad is the one which doesn’t lie, doesn’t make fake or false claims and is in the limit of decency.

Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like the advertisers lack knowledge of ethical norms and principles. They just don’t understand and are unable to decide what is correct and what is wrong.

The main area of interest for advertisers is to increase their sales, gain more and more customers, and increase the demand for the product by presenting a well decorated, puffed and colorful ad. They claim that their product is the best, having unique qualities than the competitors, more cost effective, and more beneficial. But most of these ads are found to be false, misleading customers and unethical. The best example of these types of ads is the one which shows evening snacks for the kids, they use coloring and gluing to make the product look glossy and attractive to the consumers who are watching the ads on television and convince them to buy the product without giving a second thought.

<em>Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product. For e.g. a sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical. </em>

Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and then act on their ads, then this will lead to positive results and the ad may not be called unethical. But at the same time, if advertisers believe that they can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical.

Recently, the Vetican issued an article which says ads should follow three moral principles - Truthfulness, Social Responsibility and Upholding Human Dignity.

Generally, big companies never lie as they have to prove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes its better not to reveal the whole truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never talk about the side effects of that same thing or the risks involved in intake of it.

Children - children are the major sellers of the ads and the product. They have the power to convince the buyers. But when advertisers are using children in their ad, they should remember not to show them alone doing there work on their own like brushing teeth, playing with toys, or infants holding their own milk bottles as everyone knows that no one will leave their kids unattended while doing all these activities. So showing parents also involved in all activities or things being advertised will be more logical.

Alcohol - till today, there hasn’t come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their advertisements with their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally banned. Even if there are no advertisements for alcohol, people will continue drinking.

Cigarettes and Tobacco - these products should be never advertised as consumption of these things is directly and badly responsible for cancer and other severe health issues. These as are already banned in countries like India, Norway, Thailand, Finland and Singapore.

Ads for social causes - these types of ads are ethical and are accepted by the people. But ads like condoms and contraceptive pills should be limited, as these are sometimes unethical, and are more likely to loose morality and decency at places where there is no educational knowledge about all these products.

(that is same question on my papers)

7 0
3 years ago
John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto
Nata [24]

Answer:

B. $12,000 is a sunk cost

Explanation:

By considering the given information, the cost that is correct is a sunk cost for $12,000

The sunk cost is the cost already incurred and will not be retrieved in the future. Plus, it's also termed a past cost.  

It is a useless cost and it can be avoided also.  

It is that cost that is not considered at the time of decisions making.

So, option B is correct

5 0
3 years ago
Read 2 more answers
Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in
il63 [147K]

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.

4 0
3 years ago
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