Answer:
1. Companies using FIFO will report the highest gross profit and net income.
2. Companies using FIFO will report the smallest cost of goods sold.
3. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.
4. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.
Explanation:
If costs are rising, companies using FIFO will report higher profits simply because they calculate cost of goods sold based on the oldest products which were purchased at a lower cost.
FIFO and LIFO costs will be the extreme points, FIFO showing lowest costs while LIFO will result in the highest costs, while the weighted average will be in between.
Since companies using FIFO report higher profits, they will have to pay more taxes.
Answer:
The correct answer is (B) An interpersonal utility comparison
Explanation:
Solution
Interpersonal utility comparison: refers to the summation of utility functions of different persons determined on the utility functions being comparable with each other; informally, individuals' choices must be evaluated with the same standard.
The ability to produce a social welfare function depends decisively on the ability to contrast utility functions.
In this case your roommate made an Interpersonal utility comparison.
Answer:
Material Quantity Variance= $ 3240 Unfavorable
Explanation:
Given
Standard Quantity Direct materials 5.8 ounces
Standard Price$ 3.00 per ounce * 5.8= $ 17.40
Actual output 3,400 units
Raw materials used in production 20,800 ounces
Purchases of raw materials 21,900
Working
Standard Material required for 3,400 units
*5.8= 19720 ounces.
Standard Price for 19720 ounces* 3= $ 59160
Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)
Material Quantity Variance= 3*20,800 - (3* 19720)
Material Quantity Variance= $62400- $ 59160= $ 3240 Unfavorable
It is unfavorable because the actual quantity used is more than the standard usage.
Answer:
B
Explanation:
circular flow diagram shows the relationship between the firm and households.
Answer:
The supply curve will shift to the right.
Explanation:
Whenever there is increase in supply of goods, due to any reasons the supply curve moves to right.
Here, as with the introduction of new technology, the cost of widgets one of the key inputs to the production of whatchamacallits, is reduced,
Accordingly, with the reduction in price of inputs the cost for manufacturers will decrease and they will produce more.
As a result the supply for the product whatchamacallits will increase, and with that the supply curve will move right.
