Answer:
Stock is valued at lower of : cost or market price [prudence principle]
Explanation :
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.
Answer:
C) the safety and soundness of the financial system in aggregate.
Explanation:
Macroprudential regulation focuses on reducing systemic risk.
Systemic risk is the financial risk associated with an event from a specific company damaging the whole financial system. Systemic risk was responsible for the collapse leading to the Great Recession (2008-2010).
The "too big to fail" policy is an example of macroprudential regulation.
Answer:
Explanation:
i think the answer is third party creditors
Answer: Increase of $20,000
Explanation:
The cost of making a unit is:
= Direct material + Direct labor + Variable overhead + Fixed overhead
= 10 + 14 + 5 + 3
= $32
For 4,000 units that would be:
= 4,000 * 32
= $128,000
Cost of buying 4,000 units :
= Cost of buying + Fixed cost
= (4,000 * 30) + (3 / 2 * 4,000)
= $126,000
This cost is further reduced by the renting of the unused space:
= 126,000 - 18,000
= $108,000
Impact on profit:
= Cost of making - Cost of buying
= 128,000 - 108,000
= $20,000
Increase of $20,000
Answer:
232.08 days
Explanation:
<em>Inventory to sales conversion period is the average length of time it will take a business to sell its stock items and then replace them. It give s an indication of patronage from customers and the shorter the better.</em>
It is determined as follows:
Average inventory period
= (Average inventory/cost of goods sold) × 365 days
= (110,000/173,000) × 365 days
= 232.08 days
<em>It takes on the average 232.08 days to sell and replace stock</em>
