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Artemon [7]
3 years ago
11

If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping

point in purchases, but not ending inventory
Business
1 answer:
stealth61 [152]3 years ago
4 0

Answer:

Net Income will be undervalued.

Explanation:

In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.

The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.

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Eunice buys a worm farm. She plans to sell a small carton of worms to people who want to fish for $3. Her fixed costs are $1,201
Evgesh-ka [11]

Answer:

C. 534  units

Explanation:

The formula to compute the break-even point is shown below:

= (Fixed cost) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $3 - $0.75

= $2.25

So, the break-even point would be

= $1,201 ÷ $2.25 per unit

= 534 units

Simply we divide the fixed cost by the contribution margin per unit so that the accurate units can come.

3 0
3 years ago
Match each inequality or equality to the corresponding term for the monopolistic competitor operating at optimal, short-run prod
klio [65]

Pure monopoly and pure competition are the opposing limiting cases. Monopolistic competition exists between those two.

Monopolistic competition is distinguished by the fact that, despite being closely related to one another, the products of various firms are not all the same but rather differ from one another. As numerous businesses compete to sell their products, there is also a component of competition.

Price=Average Total Cost Total Revenue is equal to total cost so there

                                                is zero economic profit.  

Price>ATC                          It means that firm is earning short run

                                                economic profit.  

Price<ATC                          It means firm is earning Short Run Economic

                                                Loss  

Price> Marginal Revenue  It means firm has market power  

Price>Marginal Cost          Mark up

Learn more about Monopolistic competition, here

brainly.com/question/29617378

#SPJ4

8 0
1 year ago
Why is good judgement important in making decisions when budgeting
labwork [276]
Good judgement is important in making decisions when budgeting because they can allow one to predict fairly accurately what the costs will be of a particular project based on one's own experience and of the current prices of supplies and say drilling charge rates and also with an adequate allowance for contingency. 
4 0
3 years ago
Read 2 more answers
Shelley wants to cash in her winning lottery ticket. She can either receive eight $100,000 semiannual payments starting today, o
Aleksandr-060686 [28]

Answer:

single-amount payment $925,160

Explanation:

Given data:

Amount $100,000

Rate 6%

interest semi annually 3%

Number of period 5

Lumpsum Payment = A\times {PVAF@ I,n}

                                = A\times {PVAF@ 3\%,5}

calculation for PVAF

PVAF @ I,N =\frac{(1-(1+I)^-N)}{I}

[email protected] 3%,5 = \frac{(1-(1+0.03)^{-5})}{0.03}

                          =4.58

                   

Lumpsum Payment =202000*4.58

                               =925160

6 0
3 years ago
A 28-year-old single investor has funds saved at a bank. He contacts an RR and wants to begin allocating funds to a retirement a
Contact [7]

Answer: a. 80% stocks, 20% bonds

Explanation:

Stocks are a better fit for young people for 2 reasons;

1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.

2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.

Fixed income is more for the older generation so that they may be sure of stable income while they are in retirement.

At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.

6 0
3 years ago
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