Answer:
The formula is not used if consumer demand and ordering and holding costs are not constant.
Explanation:
E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.
Answer:
Shally will not having any amount of bad debt deduction for the present year.
Explanation:
In the present year, Shally will not having any amount of bad debt deduction because she has a gain or income of $5,000. As, last year she has account receivable of $60,000 but this year she settled the account by receiving the $65,000 amount. So, she has received more amount than the basis in the receivable. Therefore, she will not have any bad debt deduction this year.
Answer:
b. 3,000
Explanation:
The computation of the Patent Amortization Expense in the first year is shown below:
= Legal fees to acquire a patent ÷ estimated useful life
= $30,000 ÷ 10 years
= $3,000
Only the legal expense would be amortized in a year.
And, the lesser period of legal life i.e 20 years and useful life i.e 10 years would be taken in the computation part. So, the lesser time period would be considered i.e useful life of 10 years
Answer:
Explanation:
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