A automobile would be a asset
Answer:A. Cost is greater than net realisable value(NRV)
Explanation:
An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory
NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.
Answer:
Fisher effect
Explanation:
Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.
This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.
So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.
Answer: (B) Sales volume variance
Explanation:
The sales volume variance is basically defined as the difference between the expected sold unit and the actual sold unit. The formula of sales volume variance is given by:
Sales volume variance = (Actual sold - Budget sold) × budget price
The sales volume variance is caused due to the price, product recall and the competition. It is also known as the sale quantity variance. The sales volume variance is basically reveals the total additional sale revenue that increase the cost of budget.
Therefore, option (B) is correct.
