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3 years ago

What does the phrase “last in, first out” mean?

2 answers:

5 0

Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first.

Delvig [45]3 years ago

4 0

Explanation:

LIFO stands for “Last-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The LIFO method assumes that the most recent products added to a company's inventory have been sold first. The costs paid for those recent products are the ones used in the calculation.

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North Division has the following information:

VLD [36.1K]

Answer:

due to elimination

income will decrease by $526000

Explanation:

Given data

Sales = $1180000

Variable expenses = $654000

Fixed expenses = $620000

to find out

incremental effect on net income

solution

we know here total sale is $1180000 and Variable expenses is $654000

so contribution if the division is dropped is sales - Variable expenses

put these value

contribution = 1180000 - 654000

contribution = 526000

so we say that due to elimination

income will decrease by $526000

5 0

4 years ago

Your friend Wanda established her gourmet dog treat business, Salty Pawz, using personal funds, since she initially sold her pro

denpristay [2]

Based on the advantages and disadvantages for each type of financing mentioned below, the best method for financing the expansion for Wanda's business is taking a loan (e.g. 1 year).

Take a term loan (e.g. 1 year)

A term loan is best described as an amount provided by the bank for a fixed amount and a agreed payment schedule with an interest rate either fixed or floating.

The main advantage of a bank loan is that it would not be repaid on demand instead it would be paid back as per schedule within a period of 1 to 10 years. Another advantage is that you would only have to pay the bank the interest rate and not the company's profit or share.

The disadvantage is that when loans are taken, then the amount (principal) and interest is to be repaid even if the loan is not being used. Another possible disadvantage is that a loan can be obtained if you have any asset (such as a house or car) to be kept as security. This is a guarantee in the likely event the bank's loan is not repaid on time.

Look for investors to fund her business in exchange for ownership in the company

This means finding individuals/institutions to provide financing as capital to be used in business for expansion.

Unlike a bank loan, here the investors accept the risk that if the business fails then their financing would be lost. Therefore, if the business ends up in losses then the amount is not required to be returned to their respective financiers. Another advantage is that you don't require any credit history to earn financing through investors.

The main disadvantage is that the sharing (profits) are divided between multiple investors based on their investment or as per their agreed sharing ratio. Moreover, the new investors might prefer to take more risks for a business to grow and which means that the stakes are always high.

In conclusion, Wanda is working on a small business and which is expanding at a slow rate with the risk being kept at a bare minimum. In which case taking a loan with amount and duration being set at a point where she would be able to return the loan acquired, is a better financing option for Wanda's business.

Read related link on:

brainly.com/question/18403244

6 0

3 years ago

L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia

Arlecino [84]

Answer:

It would generate a financial disadvantage for 62,800

Explanation:

$\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]$

It would generate a financial disadvantage for 62,800

Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.

5 0

3 years ago

On May 3, 2020, Concord Company consigned 80 freezers, costing $540 each, to Remmers Company. The cost of shipping the freezers

NeX [460]

Answer:

a) $22,010

b) $3,780

c) $25,790

Explanation:

a) In calculating the value of inventory still left, the total value needs to be calculated first,

= (80 freezers * $540) + $820 ( transport fees)

= 43,200 + 820

= $44,020

40 out of 80 freezers have not been sold so,

= 40/80 * 44,020

= $22,010

b) In calculating the profit, subtract the expenses from the sales

Sales = 40 * 700

= $28,000

= 28,000 - Cost of refrigerators - commission of 6% of sales - advertising - installation

= 28,000 - 22,010 - (28,000*0.06) - 180 - 350

= $3,780

c) The amount remitted by the consignor will be,

= Sales - commission - advertising - installation

= 28,000 - (28,000 * 0.06) - 180 - 350

= $25,790

7 0

3 years ago

When a government limits imports via tariffs and quotas and subsidizes exports in order to maximize exports and minimize imports

Jlenok [28]

Answer:

The correct answer is letter "A": A mercantilist philosophy.

Explanation:

The mercantilist philosophy is the economic approach whereby governments control their economies to reduce imports and maximize exports. It is believed that by taking such a measure, the wealth of the nation would increase as a result of the surplus in the balance of trade of the country. The trade balance is calculated by subtracting imports from exports.

3 0

3 years ago