Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Answer:
A) Indirect exporting
Explanation:
An indirect exporting strategy refers to selling to an intermediary business. The intermediary business is responsible for selling and distributing the product in their domestic market.
This is the easiest way of exporting since GHB will only be responsible for delivering the goods to the intermediary, and it will not need invest anything in the country. The intermediary assumes the risks of selling the goods directly to customers or using wholesale distributors.
Answer:
option (d) $1.40 taxable income rather than $1.00 tax-exempt income
Explanation:
The taxpayer would prefer option (d) $1.40 taxable income rather than $1.00 tax-exempt income
The above statement will be chosen because in this case the after tax income will be greater than the tax exempt according to the condition given in the question
Given:
Marginal Tax bracket = 25%
thus,
Taxable income = $1.40
Tax = $1.40 × 0.25 = $0.35
Therefore,
The net income = Taxable income - Tax = $1.40 - $0.35 = $1.05
and,
$1.05 > $1.00
Answer:
C) The company followed a low inventory system.
Explanation:
As the product was new, the correct estimate of expected sales could not be made, and with high demand and hype in the market the company, there was a high demand of the product.
This certainly led to stock out, and not meeting the customers needs.
Accordingly the reputation in market degraded.
This is because of low performance, because of shortage of inventory.
Therefore, the correct option is:
Poor Inventory system, which led to poor performance.
Answer and Explanation:
Managerial accounting is the procedure we likewise know as cost bookkeeping in which an administrator uses the information which is recognized, estimated and broke down from their bookkeeping procedure all together for a director to comprehend understanding with regards to basic leadership, we should have the option to comprehend that the qualities present in any conceivable choice depend on various components which have their own pertinence in the result. As chiefs, it is our obligation to choose the most ideal result notwithstanding the nearness of various distinctive option with various probabilities of achievement and result.
This is the reason, when we think about the procedure of cost accounting, we can say that the way that the chief is currently ready to comprehend the procedures dependent on their result, their likelihood of event just as other significant components which permits them that comprehension of having the option to accomplish the no doubt result which is good for the organization, it settles on their basic leadership process a lot simpler and applicable, We have to ensure that the association comprehend the significance of cost bookkeeping and different investigation forms permitting the organization the utilization of their asset and the most ideal viewpoint for them while likewise filling in as the fundamental factor of data pertinent for outside gatherings and partners and so as to for them to comprehend their venture and potential returns also.
