Answer:
d. Applying a blanket gross profit rate to merchandise that have wide varying rates of gross profit
Explanation:
To know what problem could arise fro mthis method, we must understand the method:
ending inventory = cost available for sales - sales x (1- gross profit)
being cost available for sales = beginning invnetory + purchases
a) if a portion of inventory is destroyed, then we subtract it from the cost available for sales and we should be okay.
b) the amount of purchase is being considered so it will not produce a distorsion
c) then beginning invnetory equals to zero in the formula of cost availalbe and we are also okay
d) here is the problem, if there is a wide array of gross profit we could do an average but it will lead to distorsion if the sales are not in the expected weight.
The approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
The bond-yield-plus-risk-premium approach does assumes that cost of equity is closely related to the firm's cost of debt.
- The premium approach does help to determine the value of an assetof a company's such as its traded equity.
However, the approach suggest that a firm's cost of retained earnings can be estimated by adding a risk premium of 3% to 5% points to the before-tax interest rate on the firm's own long-term debt.
Read more about the premium approach:
<em>brainly.com/question/20354983</em>
Answer:
In order to evaluate which ordering quantity is least costly, you should calculate the total cost associated with the range 1 to 99 units, using a quantity of___75___ units, and the range 200 units and up, using a quantity of____190____ units.
Explanation:
a) Data:
Quantity Price per unit Calculated EOQ
1 to 99 $110 75
100 to 199 $80 120
200 and up $50 190
b) The calculated Economic Order Quantity (EOQ) is the optimal quantity that minimizes inventory costs which include holding, shortage, and ordering or production setup costs. The EOQ is computed as the square root of: [2(setup costs)(demand rate)] / holding costs. While EOQ is popular, its use is criticized on the ground that it is over-simplistic and relies largely on consistent data inputs. Consistent data does not reflect reality.
Answer:
The conception of man as an economic animal is implied by the view that economic production is the determining “factor” or “sphere” of man or society. Against this conception can be put another, that of man as praxis. This takes account of man as a creative being, capable of realizing his freedom through his own activity. In this article the theory of the determining role of the “economic factor”, and the theory of factors in general have been examined. The economic interpretation of history, a variant of the theory of factors, has been acknowledged as partly true for the self‐alienated man and society, but the theory of factors in any variant has been found inadequate as a general theory of man, or society. The possibility of freedom cannot be reduced to the fact that the determining roles played by “factors”, vary, or to the hope that the economic “factor” can be subordinated to a “better” one. Man's freedom consists in his resolving the conflict of “factors”, and in realizing himself as an integral creative being, no longer split into independent and mutually opposed spheres.
Explanation:
that should help
a. depreciated over the period from acquisition to the date the hotel is scheduled to be torn down.
b. written off as a loss in the year the hotel is torn down.
c. capitalized as part of the cost of the land.
d. capitalized as part of the cost of the new hotel.
capitalized as part of the cost of the land.
Answer: Option C.
<u>Explanation:</u>
Since the land of the hotel is going to be the same on which the new hotel is going to be built, the cost of the hotel would be capitalized as the cost of the land of the new hotel that is to be built on the same land on which the hotel middleburg was built.
It was written in the books as the capitalized cost of the land because the land of both the hotels are going to be the same.