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Len [333]
2 years ago
13

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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Say you own an asset that had a total return last year of 11.65 percent. If the inflation rate last year was 2.75 percent, what
Tanzania [10]

Answer:

8.66%

Explanation:

The computation of the real rate of return is shown below:

Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1

= {( 1 + 11.65%) ÷ ( 1 + 2.75%)} - 1

= {(1.1165) ÷ (1.0275)} - 1

= 1.086 - 1

= 0.0866 or 8.66%

We simply apply the formula in which the numerator is nominal rate of return and denominator is inflation rate of return

6 0
2 years ago
Michelle works in an appliance store. She has a goal to sell a combination of six refrigerators, stoves or dishwashers so she ca
kotykmax [81]
The ‘SMART’ technique a tool for effective goal setting. The acronym SMART stands for Specific, Measurable, Attainable, Realistic, and Time-bound, all of which are requisites for goals. The goal “to sell a combination of six refrigerators, stoves or dishwashers to earn a bonus” is specific, measurable, attainable and realistic because Michelle has done this before. Yet the goal is not time-bound. The length of time it is required to meet is not specified in the goal. 
7 0
1 year ago
Read 2 more answers
An assistant to the mayor, who claims to understand statistics, complains about your confidence interval calculation. She assert
DaniilM [7]

Answer:

29

Explanation:

Central limit theorem states that as a sample being studied grows larger the sampling distribution of samplings means tends to a more normal distribution. This is regardless of the shape of the population.

This holds true usually if the population size is n is equal or greater than 30 (that is greater than 29). It does not matter if the population is skewed or normal.

So with a sufficiently large population the means of each item will be the same as the population mean.

4 0
2 years ago
A company sold $12,000 worth of bicycles with an extended warranty. the company's experience is that warranty expense averages 2
ladessa [460]

Given the following parameters:

The company sold $12,000 worth of bicycles, with an extended warranty.

Average warranty expense is estimated to be 2% of sales.

 

The current period's entry to record the warranty expense is:

Warranty Expense $240
Estimated Warranty Liability $240
Rationale - 12,000 x 0.02 = 240

5 0
1 year ago
7. Total Cost for Savings Piggy bank with cash Dean is planning to purchase a new Nissan Altima which costs $26,865. He has save
son4ous [18]

Answer:

The monthly deposit is calculated using PMT function :

rate = 1.2%/2 (converting annual rate into monthly rate)

nper = 12 * 5 (5 years of deposits with 12 monthly deposits each year)

pv = -3200 (Amount put into account now. This is entered with a negative sign because it is a cash outflow)

fv = 26865 (Required value of account after 5 years)

PMT is calculated to be $379.70.

The monthly deposit is  $379.70.

7 0
1 year ago
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