<span>Through distinctive use of annual high dollar items, Wheeled Coach
implements ABC analysis. ABC analysis is categorizing into A, B and C category.</span>
<span><span>A category represent some 15% of
the</span> total inventory items, but 70–80% of the
total cost.
</span>
<span><span>B category represent 30% of the
items and 15–25% of the value.
And C category represents 5% of
the annual dollar</span><span> volume, but about 55% of the total items.</span></span>
Explanation:
Data provided in the question
Change in the inventory = $1,030,000
i.e Opening inventory = $1,030,000
Income tax rate = 35%
So, the cumulative effect in the year 2018 is
Opening inventory $1,030,000
Less: income tax rate i.e 35% -$360,500
Balance $699,500
This balance would be addition to the beginning balance of the retained earning statement
Answer:
Price ceiling
Explanation:
When the government imposed a price ceiling in a market of goods which means that price set by the government lies below the equilibrium price of an economy. Price ceiling results in a higher demand for the goods because people wants to buy more quantity of goods at a lower price. But supplier of the goods wants to reduce supply as it will become less profitable for the producers to sell the product at a lower price.
