If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect its bottom line <u>d.Net income will be overstated.</u>
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Explanation:
The Formula for net income is total expense subtracted by total revenues.<u>The total expense can be further sub categorized into cost of goods sold, operating expenses, interest, and taxes.</u>
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To calculate the net income, the cost of goods sold is subtracted from the revenue. In case the cost of goods sold is very low compared to what it actually should be , it makes the net income appear larger than it actually is. it results in an increases in the tax liability for the company.
hence we can say that ,If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect its bottom line <u>d.Net income will be overstated.</u>
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Quality information is derived from data.
Answer:
P = 70, Ed = ∞ , Firm = Price Taker , Free Entry & Exit
Homogeneous Product , No selling costs , Long Run Normal Profits
Explanation:
Perfect Competition is a market form with : many number of buyers & sellers, selling homogeneous goods at uniform prices, while firms & consumers having perfect information & no selling costs.
In this market : Price = Marginal Cost , as taken by all firms from the industry & so demand curve is horizontal parallel to x axis - denoting perfectly elastic demand i.e infinite sale at prevailing price.
As market's all sellers goods are homogeneous & all have perfect information about it, no selling costs are required. Free Entry & Exit in industry also imply that Industry's profits are confined to 'Normal Profits' (No Supernormal profit / abnormal loss) in long run.
So, Smith's report would include all the above mentioned remarks.
A business person would most likely use seed capital to start a new business or use it to contribute financially to the business.
Answer:
$336,000
Explanation:
Calculation for How much cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool
Total Order Processing activity cost pool
Wages and salaries: 60% × $360,000
Wages and salaries= $216,000
Depreciation: 35% × $200,000
Depreciation=$70,000
Occupancy : 50% × $100,000
Occupancy=$50,000
TOTAL =$336,000
Therefore the amount of cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool will be $336,000
