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Why are inventories stated at lower-of-cost-or-market?a. To report a loss when there is a decrease in the future utility.b. To k

Helga [31]

Answer: The correct answer is "c. To report a loss when there is a decrease in the future utility below the original cost."

Explanation: When talking about current assets, or more precisely, Merchandise inventory, it is common that sometimes the sale value is less than the original cost of the assets, therefore a negative holding result is produced, that is, a loss.

4 0

3 years ago

Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest

katrin [286]

Answer:

The correct option is E,14

Explanation:

In using the two-day moving average to forecast for the next day sales, the previous two days sales are taken , summed to up and finally averaged(that is divided by 2)

Next day forecast=sum of previous two days sales figures/number of days

sum of previous two days forecast=13+15=28

since the number of the days is 2 ,the 8 is divided by 2,28/2=14

Ultimately the next day forecast sales figure is 14 newspapers

Option A is wrong that is just considering of the two previous day, the same thing applies to option B.

Option C is the sum of previous two days sales without being divided

5 0

3 years ago

With the recent surge in the showing of commercials to movie theater audiences, many companies have found it to be an innovative

inysia [295]

Answer:

Self selection.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers.

In this scenario, advertising relies on self selection.

5 0

3 years ago

Home Value Inc., Max Cart Inc., and Nice Necessities Inc. are three consumer-product retailing companies. Their products consist

ruslelena [56]

Answer:

D. Any advantage that one firm has will be short-lived.

Explanation:

With the three firms all producing the same product with similar resources in their production and distribution of their products, any advantage that a firm has over the others if any would not last long at all. This is because each firm is using similar technique in the same location. Hence, there's nothing special about one of the firms over the others.

8 0

3 years ago

A $ 1 comma 000 bond with a coupon rate of 6.2% paid semiannually has two years to maturity and a yield to maturity of 6%. If

pav-90 [236]

Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

Before Interest rates Fell

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

After Interest Rates Fell

New YTM = 6% - 0.8% = 5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5 = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72 = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0

3 years ago