Answer:
The correct answer is A will always be equal to or less than B.
Explanation:
In general terms, inventory is valued in terms of cost. But there must be a deviation from the cost basis of the inventory valuation and it must be reduced below cost when the utility of the goods has decreased and its sale product or item value will be less than its cost.
The decrease in the value of inventory below cost can be due to different causes, such as physical deterioration, obsolescence, a drop in the price level, etc. In these situations, the inventory is recorded at its market value. The difference in value (cost-to-market value) is recognized as a loss for the current period. It should be understood that the market value of the inventory must be estimated since the inventory has in fact not been sold. As a general rule, the concept of market value is used in terms of the current replacement cost of inventory, that is, what it will currently cost to purchase or manufacture the item.
Answer:
1. FIFO inventory is greater than (>) LIFO inventory.
2. FIFO cost of goods sold is less than (<) LIFO cost of goods sold.
3. FIFO net income is greater than (>) LIFO net income.
4. FIFO income taxes are greater than (>) LIFO income taxes.
b. Income shown on the company’s tax return would be lower if LIFO rather than FIFO is used.
Explanation:
FIFO and LIFO are accounting methods used in managing costs related to inventory, stock repurchases at different times and financial activities associated with monetary costs a company had tied up within inventory of feedstocks, raw materials, produced goods, and equipment parts.
Simply stated, FIFO and LIFO are accounting methods is used for the valuation of the cost of goods sold and ending inventory of a company.
FIFO is an acronym for "First In, First Out" and it assumes oldest unit of inventory is sold first, meaning goods that were first added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
LIFO is an acronym for "Last In, First Out" and it assumes last unit to arrive in inventory is sold first, meaning goods that were last added to inventory are the first goods removed from inventory for sale and are recorded as sold first.
Answer:
Equivalent units for direct material = 52,700
Explanation:
Given:
Completed units = 50,000
Ending inventory = 3,600 units
Ending work in process inventory = 75% complete as to direct materials
Ending work in process inventory = 25% as to conversion costs
Equivalent units for direct material = ?
Computation of equivalent units for direct material:
Equivalent units for direct material = Completed units + [Ending inventory × 75% complete as to direct material]
Equivalent units for direct material = 50,000 + [3,600 × 75%]
Equivalent units for direct material = 50,000 + [2,700]
Equivalent units for direct material = 52,700
Answer:
The correct answers are letter "B" and "D".
Explanation:
Theo Chocolate's global service program represents a great opportunity for some of its employees to have a <em>wider insight into how other markets of the same companies work</em>. Operations in different regions imply dealing with different cultures which also imply talking about different people and consumers' behaviors. Thus, all that information can be collected by the employees who are sent to those regions to work for one year.
Besides, in spotting Theo Chocolate's opportunities in foreign markets, <em>chances for diversification could arise</em>. The company must make sure the representatives sent for the exchange experience are qualified enough to get the most of the global service program.
Answer: The answer is A ensuring borrowed funds were invested in long-term productive economic assets
Explanation:
Public debt otherwise known as national debt refers to the sum total of the debt owed by the government of a country both internally and externally. .In the case of this country they obtain a long term loan to reposition their economy and create gainful employment opportunities for their citizen.
This means that the country has a long term debt which resulted from the long term loan taken for financing capital project such as upgrading of the water treatment plant.and the development of efficient rapid transit system.. This investment in such project is capable of generating revenue to the government which the government can then used in the repayment of the loan.
