Answer:
What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
- Product 1: $26 (cost)
- Product 2: $86 (NRV)
- Product 3: $56 (cost)
Explanation:
Product 1 Product 2 Product 3
Cost $26 $96 $56
Selling price $58 $138 $88
Costs to sell $6 $52 $16
net realizable value $52 $86 $72
which is lower? $26 (cost) $86 (NRV) $56 (cost)
the net realizable value = selling price minus any costs associated to the sales process
Answer: Option A
Explanation: Capital budgeting is the process by which an analyst using different tools such as discounted cash flow, future cash flow and payback period tries to evaluate the prospective long term investments of an organisation.
Accrual accounting method is an accounting convention and not a capital budgeting tool. It states that every transaction of the entity must be recorded on accrual basis.
Thus from the above we can conclude that the correct option is A.
Answer:
Consider the following explanation.
Explanation:
Marginal product MP is the increase in production of good because of unit increase in labor. Value of marginal product VMP is the increase in value of production of goods because of unit increase in labor.
The minimum wage is a regulation where the person who hired the labor needs to pay minimum wage and cannot pay below that. Here, the minimum wage is below the competitive market rate so it will not make any difference because the workers are already getting $7 as wage which is more than the minimum wage which is $6.
Six is your answer because if it cost $2.00 and you have 4 it makes sense
