In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the FIFO method.
A period of rising prices is known as an inflationary period. In an inflationary period, the prices of goods and services increase.
There are three inventory methods:
- FIFO method: The first in, first out (FIFO) method assumes that the inventories purchases first are sold first and ending inventory is made up of the goods bought last.
- LIFO method: The last-in, first-out (LIFO) method assumes that the latest purchased inventories are the first to be sold and ending inventory consists of goods purchased first.
- The average cost method: this method makes use of the weighted average cost to determine the value of goods sold and ending inventory.
The balance sheet records ending inventory. In periods of rising prices, the FIFO method would result in inventory value closest to the current cost in the balance sheet.
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Answer:
Explanation:
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Answer:
The cost of taking a night off is $140.
Explanation:
Giving the following information:
He has a 6 hour shift and makes $15 per hour. His friends however invite to go to dinner ($20) and see a good concert ($30).
<u>The economic cost incorporates the opportunity cost of not working.</u>
Economic cost= (20 + 30) + (6*15)
Economic cost= $140
The cost of taking a night off is $140.
Answer:
C) financing government spending through a Treasury sale of bonds that are then purchased by the Fed
Explanation:
The Fed is the only entity that can expand or contract the country's monetary base, and it does it with open market operations. In this case, the Fed is injecting money into the financial system and expanding the monetary base by purchasing treasury bonds, which is basically like my right hand lends money to my left hand, that is why it is called printing money.
Answer:
Both of the above
Explanation:
In this exercise, your boss requires you to analyze the company's performance (Green Hamster Manufacturing) for the past three years, and prepare a report on this. It is important that you calculate its financial ratios, including those of other competitors in the industry. However, it is also important that you realize that ratios themselves do not provide a full picture. You also have to analyze why it is that the performance is this way. For this, you would need to make observations and identify trends that are suggested by the ratio analysis. You would also have to identify the factors that drive the trends in the ratios.