Answer:
d. Under the LIFO retail method, a new layer would be added.
Explanation:
The retail method is used to estimate ending inventory/cost of goods sold and is widely used for financial reporting purposes, especially for quarterly financial statements. Retail methods are usually used with the weighted average cost flow assumption, FIFO or LIFO.
Now when the inventory increases under the retail method, LIFO retail method is the best to use because it gives you the highest cost of goods sold and the lowest taxable income. LIFO layer refers to a tranche of cost in an inventory costing system that follows the last-in, first-out (LIFO) cost flow assumption. Therefore when inventory increases under the LIFO retail method, a new layer would be added.
Answer and Explanation:
The computation is shown below:
Total material variance = Actual quantity × Actual rate - Standard quantity × Standard rate
= 29000 × $6.3 - (16,000 units × 2) × $6
= $182,700 - $192,000
= - $9,300 favorable
Material price variance = Actual quantity × Actual price - Actual quantity × Standard price
= (29,000 units × $6.3) - (29,000 units × $6)
= $182,700 - $174,000
= $8,700 unfavorable
Material quantity variance = Standard quantity × Actual quantity - Standard rate × Standard quantity
= $6 × 29,000 units - $6 × (16,000 units × 2)
= $174,000 - $192,000
= -$18,000 favorable
The favorable is when the standard cost is more than the actual one while the unfavorable is when the standard cost is less than the actual one
Complete Question:
Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. His manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with _______ justice.
Group of answer choices.
A. restorative
B. customary
C. distributive
D. frontier
E. reparative
Answer:
Distributive.
Explanation:
In this scenario, Rashad consistently went above and beyond to meet his personal deadlines and to help other team members to ensure a recent product launch was completed on time. As a result of this, his manager was impressed and offered Rashad the opportunity for a coveted leadership position on the next generation product team. The manager's action is consistent with distributive justice.
Distributive justice can be defined as the just and fair allocation of resources among a large group of people. It is mainly focused on the use of discretion as opposed to administrative laws, policies or procedures.
<em>Hence, Rashad was offered the much coveted position by his manager not because he was entitled to it by law but as a result of distributive justice being used by the manager. </em>
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
