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love history [14]
3 years ago
15

Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense

fifo, because of it produces higher income tax expense lifo, because of it produces lower income tax expense lifo, because of it produces higher income tax expense no difference in cash flow
Business
1 answer:
quester [9]3 years ago
4 0
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
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Secret Prizes Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plast
aivan3 [116]

Answer:

Budgeted direct labour hours

= 0.5 hour x 200 buckets

= 100 hours

Budgeted amount of direct labour

= 100 hours x $15

=  $1,500

Explanation:

There is need to calculate direct labour hour, which is 0.5 hour multiplied by number of buckets budgeted. then, we will determine the budgeted amount of direct labour, which is budgeted direct labour hours multiplied by hourly rate.

7 0
3 years ago
The shape of the perceived demand curve for a perfectly competitive firm reflects that firm's ability to: Group of answer choice
Paladinen [302]

Answer:

sell any quantity it wishes at the prevailing market price

Explanation:

A perfect market for competition is a market which has a high degree of competition.

It has the following features

1. With regard to the market, information is great in this rivalry between producer and customer.

2. Free entrance, and exit

3. Deals with same or homogeneous products

4. The buyers and sellers are more in this market

5 There is no transport cost exist

Plus we know that demand curve for perfectly competitive firm is elastic as the firm is price taker and reflected in a horizontal line

Hence, the last option is correct  

7 0
3 years ago
Bugle's Bagel Bakery is investigating the purchase of a new bagel making machine. This machine would provide an annual operating
bagirrra123 [75]

Answer:

Total annual cash inflow= $5,000

Explanation:

The total annual cash inflow will be the sum of the savings in operating costs and the incremental contribution from the sale of the bagels.

Annual contribution from Bagel = 1,500×$0.90=1350

Operating cost savings = 3,650

Total annual cash inflow = 1,350 + 3,650 =5,000

Total annual cash inflow= $5,000

3 0
2 years ago
Warren Porter compares the costs and benefits of current industry testing practices. Which of the following statements does he i
Triss [41]
B increase development cost for new chemical products
5 0
3 years ago
Before you buy a car you need to know your need and your​
olganol [36]
<h2>Before you buy a car you need to know your need and your <u>budget</u></h2>

Explanation:

There are many things associated with the car:

1. Test drive: You can do a test drive check whether the car suits your style and it is driver-friendly and also whether it is worth for the money

2. Check for credit score: You can check your credit score to save your money though not huge but a little

3. Compare prices: Compare the prices of the car with other shops and choose the best one.

4. Do a review of repair records: It is better to check the review so that we can assess the life time of the car and in tandem with the amount of the car.

Last but not the least, you must understand your need and the budget because these are two essential things which comes in front of you when you think about buying a car.

3 0
3 years ago
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