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2 years ago

Which of the following is false regarding the FIFO inventory method?

Business

1 answer:

serious [3.7K]2 years ago

7 0

Answer: All of the other answer choices are true.

Explanation:

FIFO simply refers to “First-In, First-Out” and the method assumes that the oldest goods that are in the inventory of a company have been sold first and therefore, the costs that are paid for them will be used for the calculation.

The following are true regarding the FIFO method:

• FIFO under a perpetual inventory system results in the same cost of goods sold as FIFO under a periodic inventory system.

• A company can choose to account for the flow of inventory using the FIFO method even if this doesn’t match the actual flow of its inventory.

• Perishable goods often follow an actual physical flow that is consistent with the FIFO method assumptions.

Therefore, the correct option is D as all are true.

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2 years ago

U.S. company buys inventory from a supplier in Canada and pays for the inventory in Canadian dollars (C$). The inventory is conv

nataly862011 [7]

Answer:

A. The rate when the inventory was paid for

Explanation:

The U.S. company should register the inventory purchase in their balance sheet using the $/C$ exchange rate at that date the inventory was paid for since that would represent the actual monetary value spent on inventory. The rate is subject to change and, therefore, using the exchange rate at the time of delivery, sale or at the balance sheet date, could incorrectly represent the company's inventory expenses.

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2 years ago

Which parts of this passage illustrate a company’s vision? Michael, who started his computer business 20 years ago, has now attr

Morgarella [4.7K]

Answer:

The below statement marks the company's vision.

In a period of 10 years, he states that the foundation envisions a broad and impartial society that respects and encourages children and actively enables people’s participation.

Explanation:

Companies tend to summarize their goals and objectives in mission and vision statements. Both of these serve different purposes for a company but are often confused with each other.

Vision of a company/organisation

Vision statement outlines what a company wants to be in the future.
The Vision Statement focuses on the future
It is a statement that is a source of inspiration and motivation.

It describes not just the future of the organization but the future of the industry or society in which the organization hopes to effect change.

Relevance to the given scenario is that in the identified statement, Micheal has clearly demonstrated, what he sees for the foundation and how it wants to impact the foundation's stakeholders.

The vision of the foundation is as follows:

In a period of 10 years, he states that the foundation envisions a broad and impartial society that respects and encourages children and actively enables people’s participation.

Vision is different from the mission:

Mission statement:

The Mission Statement concentrates on the present; it defines the customer(s), critical processes and it informs you about the desired level of performance.

The mission of the foundation is as follows:

The purpose of the foundation is to maximize the effect of public participation and welcome the recognition for volunteering.

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2 years ago

The manhawkin fund has an expected return of 16% and a standard deviation of 20%. the risk-free rate is 4%. what is the reward-t

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2 years ago

Company X, which is a chemical manufacturer, uses crude oil and buys it in the spot market on a monthly schedule. A crude oil sw

Nikitich [7]

Answer:

c. In a month when the spot price is below $25, the company will pay the difference to the counter party

Explanation:

Since Company X uses crude oil, the company buys the swap to hedge in the swap market, so option A is not appropriate because it buys the swap, which pays the counterparty when the spot price falls below $ 25.
so correct option is c. In a month when the spot price is below $25, the company will pay the difference to the counter party

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2 years ago