Answer:
e. All of these choices are true.
Explanation:
The creation director is commonly answerable for materials utilization. limiting piece, wastage, and improving expense. Job of Purchase division is to acquire the crude material required for creation. It needs to guarantee that the crude material matches the normal quality and furthermore at a sensible cost.
Genesis Company buys equipment for $900 on credit. This transaction will immediately affect: a) the income statement only. b) income statement, retained earnings statement, and balance sheet. c) income statement and retained earnings statement only. d) balance sheet only.
Answer: D. balance sheet only
Explanation: The transaction will immediately affect the "balance sheet only" not the income statement or retained earnings.
Balance sheet shows the business net worth. Balance sheet shows the financial position of a business listing the liabilities and assets and owners equity at a particular time.
So Genesis buying a new equipment on credit will show in its balance sheet.
The payroll register of Heritage Co. indicates $4,200 of social security withheld and $1,050 of Medicare tax withheld on total salaries of $70,000 for the period. Federal withholding for the period totaled $15,350. Retirement savings withheld from employee paychecks were $2,800 for the period. Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.
Answer:
the journal entry should be:
Dr Salaries expense 70,000
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr Employee federal income taxes withheld payable 15,350
Cr Retirement saving withheld from employees payable 2,800
Cr Salaries payable 46,600
Explanation:
If the company was to journalize their payroll taxes expense:
Dr Payroll tax expense 5,250 + (depends on FUTA and SUTA taxes)
Cr FICA - Social security taxes payable 4,200
Cr FICA - Medicare taxes payable 1,050
Cr State unemployment taxes (SUTA) payable (varies depending on salaries)
Cr Federal unemployment taxes (FUTA) payable (varies depending on salaries)
To create a journal entry for Heritage Co.'s payroll, debit the Salaries Expense with $70,000 and credit respective payable accounts with the amounts withheld (Social Security Payable - $4,200, Medicare Payable - $1,050, Federal Withholding Payable - $15,350, and Retirement Savings Payable - $2,800). These figures represent the employees' contributions.
Explanation:The question asks for a journal entry for Heritage Co.'s payroll for a specific period, given certain details. Here's how to record it:
Salaries Expense - $70,000 ($4,200 for Social Security, $1,050 for Medicare, $15,350 for federal withholding, and $2,800 for retirement savings) To Social Security Payable - $4,200 To Medicare Payable - $1,050 To Federal Withholding Payable - $15,350 To Retirement Savings Payable - $2,800
The journal entry above shows the employer’s record of the payroll expenses and the relevant liabilities. Note that these figures are in relation to employee deductions - they do not include the employer’s contribution to Social Security, Medicare and any other benefit which usually match the employee's contribution.
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The government of Wrexington, a country which has adopted American GDP accounting conventions, has calculated that the seasonally-adjusted market value of all final goods and servicesproduced within Wrexington in quarter 1 was $5 billion. The government will report that GDP in quarter 1 was a.$1.25 billion at an annual rate.b.$4 billion at an annual rate.c.$5 billion at an annual rate.d.$20 billion at an annual rate
Answer:
d.$20 billion at an annual rate
Explanation:
As $5 billion was quarter 1 market value of final goods and services produced,the annual rate will be $5*4=$20 billion annually
Olivia recently opened a salon. she strategically priced her salon's services slightly lower than that of other popular salons in the neighborhood. subsequently, she handed her customers flyer that listed the prices of various services that she offered in her salon. it also listed the prices charged by two other salons in the area for the same services. the given scenario exemplifies _________.
a. comparative advertising
b. pioneering advertising
c. institutional advertising
d. advocacy advertising
Answer:
a) comparative advertising
Explanation:
The given scenario exemplifies Comparative Advertising. It is a marketing strategy in which a product or service of a particular company is presented as superior when compared to a competitor's in terms of price, quality, etc. It may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor as here Olivia listed the prices of various services that she offered as well as the prices charged by two other salons in the area for the same services.
What is resource partitioning?
Answer:
See explanation below foe answer.
Explanation:
Resource partitioning is a term that refers to the division of resources that are limited by species in order to avoid competition in an ecological niche. In an environment where organisms are in constant competition for limited resources, there arises the need for the organisms and different species to find ways in which to coexist with one another.
An example of Resource Partitioning be seen when two species of hummingbirds in a tropical rainforest, each using flower nectar as their main source of food. But, individuals of the same species can compete with each other also.
Resource partitioning is the process by which different species divide and share resources to minimize competition. This allows organisms to coexist and reduce competition for limited resources.
Explanation:Resource partitioning refers to the process in which different species in a community divide and share resources in order to minimize direct competition. This can involve utilizing different resources, occupying different areas within a habitat, or feeding at different times of the day. By doing so, organisms are able to coexist and reduce competition for limited resources.
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what is partnership business?
Answer:
when you are in a pare working together
Explanation:
Answer:
Partnership business is a type of business in which two individuals share the profits and management for the sake of increasing business.
Explanation:
There is formal contract between two parties so that they work with each other to get huge amount of profit.
Money market mutual funds
a.are very risky investments.
b.require significant investments, so are out of reach of the common investor.
c.carry no loads.
d.none of the above.
e.Both are very risky investments and require significant investments, so are out of reach of the common investor are correct.
Answer:
c. carry no loads.
Explanation:
They are also called as the mutual funds and are open-ended mutual fund investments in short debit security as the U.S treaty bills and the commercial papers. They are made with the goal of maintaining high stable assets values by liquid investments. Regulated by the investments company act of the U.S of 1940, are important providers of the liquidity to the financial institutions. These funds seek to limit the exposure of the losses due to the credit, market, and liquidity risks.Instead of offering its products through "brick-and-mortar" companies, a book distributor decides to market directly to customers through the U.S. mail. This is an example of:
a. Disintermediation
b. Intensive distribution
c. Exclusive distribution
d. Franchising
Answer:
a. Disintermediation
Explanation:
Disintermediation: In finance, the term "disintermediation" is described as the withdrawal of a few specific funds associated with an "intermediary financial institutions", for example, loan associations and banks & savings in order to invest them directly. However, disintermediation generally happens when the inflation rates are being high yet bank interest rates are considered as stagnant and therefore depositors of the bank may receive a good return by investing in mutual securities and funds.
In the question above, the given statement represents disintermediation.
Sunland Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below.
Item D Item E Item F Item G Item H Item I
Estimated selling price $142 $130 $112 $106 $130 $106
Cost 89 94 94 94 59 42
Cost to complete 35 35 30 41 35 35
Selling costs 12 21 12 24 12 24
Using the LCNRV rule, determine the proper unit value for balance sheet reporting purposes at December 31, 2017, for each of the inventory items above.
Item D $
Item E $
Item F $
Item G $
Item H $
Item I $
Answer:
Item D $124 (cost)
Item E $109 (NRV)
Item F $100 (NRV)
Item G $82 (NRV)
Item H $94 (Cost)
Item I $77 (Cost)
Explanation:
Sunland Company uses the LCNRV method.
The LCNRV is a generally acceptable Accounting Practice rule which states that items of stock should be valued at the lower of:
i. Cost of purchasing the stock items or
ii. The net realizable value of the stock items at their current state.
Records that will go to the balance sheet in the case of this firm is :
Step: determine the costs and Net realizable Value based on each item:
D: Cost = $89
Add cost to complete = $35
Total cost = $124
D: Net Realizable value:
Selling price = $142
Less Selling costs = $12
Net realizable value = $130.
For D we go with Cost which is lower ($124)
E: Cost = $94
Add cost to complete = $35
Total cost = $129
E: Net Realizable value:
Selling price = $130
Less Selling costs = $21
Net realizable value = $109.
For E we go with Net Realizable Value, which is lower ($109)
F: Cost = $94
Add cost to complete = $30
Total cost = $124
F: Net Realizable value:
Selling price = $112
Less Selling costs = $12
Net realizable value = $100.
For F we go with Net Realizable Value, which is lower ($100)
G: Cost = $94
Add cost to complete = $41
Total cost = $135
G: Net Realizable value:
Selling price = $106
Less Selling costs = $24
Net realizable value = $82.
For G we go with Net Realizable Value, which is lower ($82)
H: Cost = $59
Add cost to complete = $35
Total cost = $94
H: Net Realizable value:
Selling price = $130
Less Selling costs = $12
Net realizable value = $118.
For H we go with Cost, which is lower ($94)
I: Cost = $42
Add cost to complete = $35
Total cost = $77
I: Net Realizable value:
Selling price = $106
Less Selling costs = $24
Net realizable value = $82
For I we go with Cost, which is lower ($77)
Many companies use celebrities or professionals in their advertisements. Which step of the communication process is represented? A. determining the communication objectives B. designing a message C. choosing the media D. selecting the message source E. collecting feedback
Answer:
The correct answer is letter "D": selecting the message source.
Explanation:
Message sources are characters a company may select at the moment of creating an advertising campaign. The character is usually related to the message the firm attempts to deliver in the promotion but it needs this persona to attract the target audience faster. Celebrities, experts, actors, or models are typically selected for such purposes.
Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $ 4 comma 000 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018?
Answer:
$2,000
Explanation:
The amount which is to be recorded for the service revenue for the month of the December 2018 is computed as:
Service revenue = Monthly Salary / Number of days in the month of December × Number of days from being hired
where
Monthly salary is $4,000
Number of days in the month of December is 30 days
Number of days from being hired is 15 days (From 15 December to 30 December)
Service revenue = $4,000 / 30 days × 15 days
Service revenue = $133.33 × 15 days
Service revenue = $1999.95 or $2,000
Therefore, the service revenue for the month of December amounts to $2,000.
Your neighbor asks you to invest $500 at 5 percent interest in her catering business. She insists that with all the working parents in the neighborhood, a business that provides home-cooked meals has the potential for making huge profits. You want to invest but are concerned because your neighbor has not had any business experience. How can you offset your risk?
Answer: Ask for a higher interest rate
Explanation:
The best way to offset the risk is to ask for a higher interest rate which is more than the five percent that is proposed by my neighbor.
Even though I want to invest in her catering business, her lack of experience in the catering business is of concern to me, hence, I've to settle for a higher percentage than the percentage which she proposed.
The impact of crowding out
a. is larger in a closed economy as compared to an open economy.
b. is larger in an open economy as compared to a closed economy when fiscal policy is contractionary.
c. is larger in a closed economy as compared to an open economy when the fiscal policy is contractionary.
d. is larger in an open economy as compared to a closed economy
Answer:
The correct answer is D
Explanation:
The crowding out in economics is defined as the phenomenon which happen when increased government involvement in the sector of the market and the economy substantially affects the remainder of the market through demand or the supply side of the market.
Open economy is the economy where not only the domestic companies but also entities of another country in trade of products whereas the closed economy is the economy where there is no trading activity with the outside economies.
So, the crowding out impact would be larger in the open economy as compare to the closed economy.
An employee finds out that she is making the same salary as a co-worker who is performing half the amount of work, and she becomes motivated to somehow fix this unfair situation. Which theory best describes this scenario?
a. goal-setting theoryb. VIE theoryc. need theoryd. equity theory
Answer:
d. equity theory
Explanation:
Based on the scenario being described within the question it can be said that the theory that best describes this would be equity theory. This theory focuses on determining whether the distribution of resources is fair to all individual parties involved. Which is what the employee in this scenario has determined that is not fair and has decided to do something to solve this unfair situation.
Tax cuts _________.A) and increases in government expenditures shift aggregate demand right.B) and increases in government expenditures shift aggregate demand left.C) shift aggregate demand right while increases in government expenditures shift aggregate demand left.D) shift aggregate demand left while increases in government expenditures shift aggregate demand right.
Answer: A. and increases in government expenditures shift aggregate demand right.
Explanation: Government expenditures or spending affect the aggregate demand, because it is one of the component of aggregate demand. If there is an increase in government spending the aggregate demand will shift to the right.
When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.
Tax cuts and increases in government expenditures both result in a rightward shift of the aggregate demand curve. This is because both actions increase the overall demand in the economy.
Explanation:The correct answer to your question 'Tax cuts _________' is A) and increases in government expenditures shift aggregate demand right. Tax cuts allow consumers to have more disposable income, which increases their purchasing power leading to a rise in consumption. Similarly, when the government increases its expenditures, it directly stimulates economic activity, leading to increased demand. Both of these actions result in a rightward shift of the aggregate demand curve.
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Holding other factors constant, if the consumption tax is replaced with an income tax so that saving is taxed, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
Answer:
Increase, decrease
Explanation:
One can answer the above case by applying simple concepts of demand and supply. If the savings are taxed in an economy then individuals will spend more as they will get more benefit from their income by spending rather than by saving, this will lead to more consumption and demand which further leads to more supply of money leading to decrease in the interest rates.
As people will spend more from their income due to higher taxes the savings in the economy will automatically decrease. Such decisions are usually made by governments to tackle recession in the economy.
Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict time lines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented, and the finance department emphasizes attention to detail. The organizational culture of Trends Inc. values aggressiveness, innovation, and risk taking. These characteristics express its ________. dominant culture autocratic culture highly formalized culture subculture reflective culture
Answer:
Dominant culture
Explanation:
A dominant culture is a culture that is dominant and practiced within a certain organization, ethnicity, etc. This dominant culture could be a language, a certain value or custom.
In the above question, aggressiveness, innovation and risk taking are dominant cultures in Trends Inc. This means that the above 3 values are very dominant feature in the manner of operation and running of the trends Inc.
This means that in Trends Inc, each and every employee of the firm has the above dominant cultures inculcated in them as it is a prerequisite and it shows the firm's values.
Cheers
Answer:
subculture
Explanation:
The core values of Trends's organizational culture are aggressiveness, innovation and risk taking. Adding to the company's core values, the marketing and finance department also have their own specific values (along with the company's) and they are part of the company's subculture. A large company may have one culture that applies to the whole company and several subcultures that complement the company's culture but apply only to specific departments.
The primary difference between commodity money and fiat money is that
Answer:
Commodity money has intrinsic value whereas the fiat money does not have intrinsic value
Explanation:
Commodity market is the market which have the virtual or physical market place for trading, buying and selling of primary or raw materials. Presently, about 50 major commodity markets worldwide. And this market has intrinsic value, which means that the commodity has value though not used as money.
Fiat money is the currency created as money, usually through government regulation, and has no intrinsic value.
Therefore, the primary value is that the commodity market has intrinsic values whereas the fiat currency does not have.
____________ makes subordinates aware of the importance of their performance to the organization and aware of their own needs for personal growth, motivating subordinates to work for the good of the organization.
Answer:
Transformational Leadership
Explanation:
Transformational leadership is a form or theory of leadership whereby the leader encourages employees or workers implement changes, whilst inspiring and motivating them to be innovative. A transformational leader is concerned with helping employees advance to higher levels of morale, confidence and motivation. They motivate employees to work for the good of the organization while also hitting on the aspects on the need for self growth.
Paris won a lawsuit against railroad, and was given a settlement check. the check somehow came to be in eddy's possession. eddy indorsed the check to himself and deposited it in his account at bank. paris sued bank, alleging that it was liable to her for having paid the check over an unauthorized indorsement. is bank liable to paris?
Answer:
Yes under the theory of conversion.
Explanation:
Conversion occurs when an individual takes possession of an item and excercises ownership of it in a way that is in conflict with the real owner's right of possession.
In this instance Eddy paid in a cheque that was not owned by him. The onus was on the bank to confirm from the account owner the real beneficiary of the check.
This would have prevented the conversion of the check through an illegal indorsement.
Conversion is a common type of fraud with regards to dividend warrants where dividend warrants edited to present a different person as the owner of the check.
A manufacturer of toilet tissue sent its brand mascot to help refurbish restrooms at fairgrounds across the country. As part of this project, each restroom was to provide fairgoers with a clean oasis featuring aromatherapy, soothing music, constant maintenance, and premium toilet tissue. Newspaper articles about the company's role in making restrooms inviting are an example of ________.
Answer:
The correct answer is letter "C": publicity.
Explanation:
Publicity is the information spread by a company, entity, or public or private organization to create a favorable atmosphere about itself. This information is transmitted through different communication mediums. Publicity is a resource that allows companies to gain a free space in communication mediums persuading consumers with news about their products or services.
Final answer:
Newspaper articles about a toilet tissue company's mission to upgrade restrooms provide an example of publicity, which enhances brand image and consumer awareness through media coverage.
Explanation:
Newspaper articles about the company's initiative to refurbish restrooms across the country with features like aromatherapy, soothing music, and premium toilet tissue represent an example of publicity.
Publicity refers to the attention that media outlets give to an event, person, or product, often without direct payment from the promoter.
Such articles serve to create a positive image and increase awareness of the company's brand among the public, enhancing its reputation and potentially influencing consumer behavior.
This strategy leverages the informational influence, making the brand more desirable through association with positive changes and improvements in public spaces.
The ultimate goal is to foster favorable consumer sentiments and preferences through indirect, non-paid media coverage.
Mary agrees to prepare Georgia's taxes for $150 plus costs. Georgia decides that she wants extra help on other business matters, and calls Mary to discuss the changes to their contract. Mary says the extra professional services will increase the total cost to $250 and Georgia agrees to the new price. When Mary finishes all of the work, Georgia is legally obligated to pay:
Answer:
$250
Explanation:
The first agreement between Mary and Georgia stated a $150 payment plus costs. But later Georgia decided to modify the agreement by including other services provided by Mary, and Mary accepted with a new price that Georgia accepted. The acceptance by both parties means that the modified agreement is supported by additional consideration.
The first step in problem solving is to:
A. propose as many cost-effective solutions as possible.
B. discuss and document individual views until everyone agrees the nature of the problem.
C. evaluate team resources to ensure problem can be solved.
D. evaluate individual resources to ensure the problem can be solved.
Answer:
The correct answer is B
Explanation:
Problem solving is the act which states or defines the problem, identifying, determining the problem cause, choosing the alternatives for the solution, prioritizing and executing the solution.
The problem solving involves or comprise of the four stages of the team which are performing, storming, forming and norming. And the first or basic step comprise of the discussing as well as documenting the views of the individual until everyone agrees the problem nature.
Christine agrees to marry Barry after he tells her he will buy her a brand-new Rolls Royce within a year of their marriage. After they are wed, Barry refuses to give her the car. What will happen if Christine sues Barry?
A. She will win because of the "one-year rule."
B. She will lose because a promise made in consideration of marriage must be in writing.
C. She will win because a spouse is legally required to keep the promises made to his/her partner.
D. She will lose because Barry's promise of a car is a collateral promise, which must be in writing.
Answer:
Correct option is (B)
Explanation:
As per Statute of law, for some promises to be enforceable by law, it should be in writing. One of the contracts that require a valuable consideration to be in writing is contract of marriage. In case a party promises to give something of value after marriage, it should be in writing.
Here, Christine will lose the suit as promise made by Barry to buy her a new car after marriage is not in writing. So, promise is not enforceable.
Mark brainliest:
13. The main purpose of advertising is to
A. fool consumers.
B. sell goods.
C. entertain consumers.
D. inform consumers.
Answer:
I think D
Explanation:
The main purpose for advertising is to let customers know that
you have something new in stock unless you want to go broke and
have any cash at all
Answer:
sell goods
Explanation:How will people know what to buy if it is not advertise.
________ Trends :Toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets.
Answer:
Application Trends
Explanation:
The widespread impact of the internet, enterprise intranets, and inter-organizational extranets have been a key factor in the support and success of businesses in local and global markets.
The use of applications in business for different unique activities greatly enhanced production, analysis, evaluations, support and quality delivery in businesses. The use of the internet and other technological infrastructures have enhanced enterprise collaboration, strategic advantage, and commerce in local and global markets.
The question explores trends and technological advancements, including virtualization, botnets, and the Internet of Things (IoT), that influence the pervasive use of the Internet in business, commerce, and social interactions. These developments have revolutionized how businesses operate and how individuals interact, leading to a digitally engaged society.
Explanation:The question revolves around trends toward the pervasive use of the Internet, enterprise intranets, and interorganizational extranets to support electronic business and commerce, enterprise collaboration, and strategic advantage in local and global markets. The Internet, as a global system of interconnected computer networks, plays a critical role in today's digital world, allowing for communication and information sharing across various domains. It has led to the creation of virtual environments where information is gathered, shared, and engaged with. Important aspects of the Internet include the World Wide Web and social media, which have become central to our digital interactions.
Technological advancements and the development of the Internet have dramatically influenced social interactions, commerce, and the way businesses operate. Innovations such as virtualization, botnets, and the Internet of Things (IoT) are just a few examples of emerging technologies shaping our future. These technologies not only provide new opportunities for businesses and consumers but also present challenges in terms of security, privacy, and ethical considerations.
The convergence of the Internet with personal electronics like smartphones and the development of cell phone networks capable of handling data traffic have further integrated the Internet into our daily lives. This integration supports the notion that we are moving towards a more connected and digitally engaged society, which relies on the Internet for social purposes, including personal media and social media interactions. Therefore, understanding these trends and technologies is critical for gaining strategic advantages in local and global markets.
Opportunity cost refers to current spending habits. 1.changing economic conditions that affect a person's cost of living. 2.storage facilities to make financial documents easily available. 3.trade-offs associated with financial decisions. 4.avoiding the use of consumer credit.
Answer:
3.trade-offs associated with financial decisions.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
It is also known as implicit cost.
For example, a student chooses to go to grad school instead of working at a company where she would be paid $350,000 per year. Her opportunity cost of going to grad school is the $350,000 she would have earned if she decided to take the job instead.
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The correct answer is option 3. Trade-offs associated with financial decisions.
Opportunity cost represents the value of the next best alternative that is foregone when a decision is made. It highlights the trade-offs involved in financial and economic choices. For example, if you spend money on a vacation, the opportunity cost is the investment or savings you could have accrued instead.
Understanding opportunity cost is crucial for making informed decisions because it involves evaluating what is sacrificed in pursuit of a particular choice. This concept applies to both personal finance and business decisions, helping individuals and organizations weigh the benefits of different options.
For instance, choosing to spend time on one activity over another means forgoing potential benefits from the alternative activity. By considering opportunity costs, people can better assess the true cost of their decisions and strive for more effective resource allocation.
Real GDP measures the ______ of production; nominal GDP measures the ______ of production. current dollar value; physical volume current dollar value; current dollar value current dollar value; market value physical volume; current dollar value
Answer:
Physical volume; current dollar value
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.
Real GDP is GDP adjusted for inflation. It calculates physical volume. It is calculated using base year prices.
Nominal GDP is GDP calculated using current year prices.
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BE6-5 In its first month of operation, Hoffman Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 140 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
Explain why this amount is referred to as phantom profit. The company uses the periodic method. Identify the impact of LIFO versus FIFO.
Answer:
Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO.
If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.Explain why this amount is referred to as phantom profit.
Phantom profit basically refers to the profit that the company could have made using a different accounting method.Identify the impact of LIFO versus FIFO.
LIFO increases COGS by $240, reducing gross profits by the same amount.Explanation:
units price total
purchase 100 $6 $600
purchase 200 $7 $1,400
purchase 140 $8 $1,120
total 440 $3,120
ending inventory 180
using LIFO $1,160
using FIFO $1,400
COGS using LIFO = $3,120 - $1,160 = $1,960
COGS using FIFO = $3,120 - $1,400 = $1,720
If the company used FIFO instead of LIFO, their profits would increase by $1,960 - $1,720 = $240 because their COGS would be lower.
To calculate the phantom profit resulting from using FIFO instead of LIFO, compare the ending inventory value under both methods. The impact of LIFO versus FIFO is seen in the calculation of inventory cost and resulting profitability.
Explanation:Phantom profit is the hypothetical profit that would result if a company used a different inventory costing method, such as FIFO instead of LIFO. To calculate the phantom profit caused by using FIFO instead of LIFO, we need to compare the ending inventory value under both methods. In this case, the phantom profit would be the difference between the ending inventory value using FIFO and LIFO.
In this situation, using the periodic method, if the company used FIFO instead of LIFO, the ending inventory value would be higher because the older, lower-cost units would be assumed to be sold first. Therefore, the phantom profit would be the difference between the ending inventory value using FIFO and LIFO in this specific scenario.
The impact of LIFO versus FIFO is mainly seen in the calculation of inventory cost and the resulting profitability. LIFO, which stands for Last-In, First-Out, assumes that the most recently purchased inventory is sold first, resulting in higher cost of goods sold and lower profit. On the other hand, FIFO, which stands for First-In, First-Out, assumes that the oldest inventory is sold first, resulting in lower cost of goods sold and higher profit.
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When Vanessa, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, Italy, the purchase is: A. both a U.S. and an Italian import. B. a U.S. import and an Italian export. C. a U.S. export and an Italian import. D. neither an export nor an import for either country.
Answer:
B. a U.S. import and an Italian export.
Explanation:
A purchase can be considered as an import for a country if such good or service that is purchased in that country is produced and imported from another country or foreign country.
On the other hand, a purchase can be considered an export for a country if the good or service that is produced in that country is exported to a foreign country for purchase.
The designer dress purchased by vanessa, from Barneys of New York that was made in Milan, Italy can be regarded as a U.S. import and an Italian export.