The cumulative difference between reporting inventory at LIFO rather than FIFO is commonly referred to as the LIFO reserve
<h3>What is
LIFO reserve?</h3>
Generally, LIFO reserve is an accounting term that represents the difference between the cost of inventory calculated using the first-in, first-out (FIFO) method and the cost calculated using the last-in, first-out (LIFO) method for the purposes of bookkeeping.
In conclusion, The LIFO reserve is a term that is widely used to refer to the accumulated discrepancy that results from reporting inventory using the LIFO method rather than the FIFO method.
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Answer:
On a Saturday, Wanda goes to the local farmers’ market to take a break from baking treats. While she is there, she sees a vendor with customers crowded around the stall. When she asks someone what all the excitement is about, a customer informs her that a woman who sells gourmet dog treats has just arrived, and if Wanda doesn’t get in line early, the woman will sell out. The customer goes on to tell Wanda that this vendor always sells out, and that since she has started buying these treats for her dogs, her dogs seem much healthier and happier. Wanda waits in line with the other customers.
When it is Wanda’s turn, she engages the woman in conversation about the ingredients in her treats and her process for making them. The woman is very nice and actually shares a recipe with Wanda for a pumpkin peanut butter dog biscuit that has always been one of her best-selling items. Wanda purchases one of each treat the woman is selling and takes the recipe when it is offered to her, never mentioning that she is in the same business. She plans to “reverse engineer” the treats and test the new recipe out that very day.
Explanation:
If demand for a good is extremely elastic, raising the price of that good typically has what effect on total revenue--- decreases
If demand is elastic at a given price level, then should a company cut its price, the percentage drop in price will result in an even larger percentage increase in the quantity sold—thus raising total revenue. However, if demand is inelastic at the original quantity level, then should the company raise its prices, the percentage increase in price will result in a smaller percentage decrease in the quantity sold—and total revenue will rise.
Demand elasticity :
Demand elasticity is the change in quantity demanded per change in a demand determinant. Although there are several demand determinants, such as consumer preferences, the main determinant with which demand elasticity is measured is the change in price. Businesses are particularly interested in price elasticity, since it measures by how much total revenue changes with the price.
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Answer:
Letter D is correct
Explanation:
d. The primary reason the annual report is important in finance is that it is used by investors when they form expectations about the firm's future earnings and dividends, and the riskiness of those cash flows
