Which of the following is correct about the Limitations of accounting? Select one: a. Accounting not looks at quality aspect b. there is no bias in accounting c. Price level changes consider in accounting d. none of the options are correct
Q: Give three examples of opportunity costs that typically are not recorded in accounting systems,…
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Q: Whether the firm uses the market-based approach or the cost-based approach for pricing decisions,…
A: Introduction: Market based approach: For calculating the selling price of Asset firm uses market…
Q: What is the major reason to adopt changes in price accounting. a. To remove the misleading effect on…
A: Adoption of Changes in Price Accounting In the tradition accounting method calculation of the…
Q: Disregarding the special circumstances when bases other than the point of sale are used, discuss the…
A: Revenue recognition is a generally accepted accounting principle (GAAP) that states the conditions…
Q: Not being able to take advantage of the trade discounts does not mean that it is costly on the part…
A: A discount represents the reduction in value of products or services sold-out within the business…
Q: Cost accounting is used as a means of fixing a selling price. Select one: True False
A: Cost accounting is a method of managerial accounting which is used to calculate the total production…
Q: 1. When applying lower of cost or market, market value A. is defined as the selling price B.…
A: This Net realizable value(NRV) generally a common method used in valuation of an asset in inventory…
Q: Which of the following is not a managerial planning or control report?
A: Identification of incorrect option with regards to managerial planning or control reports
Q: Which of the following is a basic limitation associated with ratio analysis
A: Ratio Analysis is very helpful in analyzing the balance sheet and income statement items and…
Q: Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting…
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Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…
A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…
Q: Which of the following is not a criticism of using ROI as the only performance measure?
A: ROI stands for Return on investment that shows the return earned by the company on the capital…
Q: Which of the following statements is incorrect about materiality? O A. Materiality is a matter of…
A: Material items or events means important items that should be disclosed or reported in financial…
Q: Which of the statement is not a true reflection of Target cost gap ? The target cost gap =…
A: target costing is the way in which deriving of a target cost is done to set the production manager…
Q: 1 Consider the following statements concerning costs. When making decisions, relevant costs that…
A: Management accounting is the one widely used by the management and the accountants for various…
Q: 1 The use of alternative accounting methods will result in a lower price-earnings ratio. A: True B:…
A: Accounting methods:- An accounting methods are defined as those methods, which can be adopted by…
Q: Why can full cost accounting lead to wrong management decisions?
A: Full cost accounting says that total costs of the product either it is fixed costs or it is variable…
Q: Which one of the following is not a disadvantage of the specific identification method of inventory…
A: Under specific identification methods of inventory, specific inventory movement is measured. So it…
Q: What is customer value? Choose the correct. A. Ratio between the customer's perceived benefits…
A: A customer is an entity that buys goods or services from third parties. Accumulating a profitable…
Q: Which of the following criticisms does NOT apply to historical cost financial statements during a…
A: The historical cost financial statement represents the financial statement that records the assets…
Q: What is false about cost plus mark-up pricing? a. attempts to apply or allocate fix costs to pricing…
A: Cost plus pricing: It is a pricing strategy in which company set selling price by charging markup…
Q: Th e information provided by a low-quality fi nancial report will most likely :A . decrease company…
A: SOLUTION:- Financial reporting quality is related to the quality of the information contained in…
Q: Wrong allocation of common costs lead to A. Inaccurate estimation of cost of products or…
A: Common costs are those costs that are incurred for two or more products simultaneously. Common costs…
Q: CVP analysis makes all of the following assumptions except a change in volume is the only…
A: In order for a CVP analysis to be accurate, certain assumptions must be met. These assumptions are:…
Q: The chairman of the board of directors of the company for which you are chief accountant has told…
A: Historical cost is usually the price at which the asset is recorded that was purchased at. As the…
Q: Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?…
A: If the the earnings are negetive, then value would also be negetive, which is not possible. If…
Q: Which statement is FALSE about product-market fit?
A: Product market fit is a strategy to find which product caters to the demand of the market. It is…
Q: 22) Which one of these is not an objective of cost accounting? a. Assisting shareholders in decision…
A: SOLUTION- OBJECTIVES OF COST ACCOUNTING- 1-ASCERTAINMENT OF COST. 2-FIXING IN SELLING PRICE.…
Q: Discuss the merits of the following objections to the sales basis of revenue recognition; 1.It is…
A: Sales basis of revenue recognition: It's means that revenue will be recognised when the title of…
Q: The use of alternative accounting methods:
A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…
Q: /Identify the false statement: a. Cost accounting is based on data derived from financial accounts…
A: Cost and Management Accounting are maintained by the company in order to determine the cost of goods…
Q: Which of the following accounting principles or conventions is contradictory to the GAAP requirement…
A: As per matching principle of accounting, all expenses of a particular period are matched with the…
Q: Which two economic concepts are fundamental to the relevance of fair values to accounting? i. The…
A: The two economic concepts are fundamental to the relevance of fair values to accounting are…
Q: When comparing the lower of cost to market the appropriate market value is determined before…
A: The inventory costing approach known as the lower-of-cost-or-market (LCM) values inventory at the…
Q: What factors might impact on the management’s selection of an inventory cost flow assumption? In…
A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…
Q: Which of the following statements is true regarding the lower of cost or net-realizable value (NRV)?…
A: Inventory means the stock of goods in which the businessmen deals. Every company wants to maintain…
Q: When applying lower of cost or net realizable value under the FIFO, average cost, or specific…
A: The lower of cost or net realizable value method says we should record the inventory at market price…
Q: It is said that the most important/critical component of the sales comparison approach to value is O…
A: Sales refer to the transaction arises and taken place between two or more individual or companies in…
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- T o p i c : F o r e c a s t i n g T e c h n i q u e s Why does the presence of fixed costs cause the percent-of-sales method of pro forma income statement preparation to fail? What is a better method? Describe the judgmental approach for simplified preparation of the pro forma balance sheet. T o p i c : F i n a n c i n g O p e r a t i o n s a n d E x p a n s i o n W h a t a r e t h e n e t p r o c e e d s f r o m t h e s a l e o f a b o n d ? W h a t a r e f l o t a t i o n c o s t s , a n d h o w d o t h e y a f f e c t a b o n d ’ s n e t p r o c e e d s ? W h a t p r e m i s e a b o u t s h a r e v a l u e u n d e r l i e s t h e c o n s t a n t - g r o w t h v a l u a t i o n ( G o r d o n g r o w t h ) m o d e l t h a t i s u s e d t o m e a s u r e t h e c o s t o f c o m m o n s t o c k e q u i t y , r s ? H o w d o t h e c o n s t a n t - g r o w t…Which of the following statements about the financial risk to providers under different reimbursement methods is most correct? Risk is the most under cost-based reimbursement. Risk is the most under capitation O None of these answers is correct. Risk is the most under charge-based reimbursementWhich two economic concepts are fundamental to the relevance of fair values to accounting? i. The Efficient Markets Hypothesis ii. Supply and Demand iii. Economic Rationalism iv. Marginal Utility Which of the following is NOT a transaction cost that should be considered in the calculation of fair value? a. Costs associated with marketing the item. b. Transport costs. c. Agent's selling fees. d. None of the above, i.e. they are all transaction costs.
- Postpurchase dissonance is a function of a. None of the mentioned b. The difficulty of choosing among the alternatives c. The degree of commitment or irrevocability of the decision d. All of the mentioned e. The importance of the decision to the consumerWhich accounting rule serves as the primary basis for the lower-of-cost-or-market methodology for inventory valuation? A. conservatism B. consistency C. optimism D. pessimismChoose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit analysis includes some simplifying assumptions. Which of thefollowing is not one of these assumptions?a. Cost and revenues are predictable.b. Cost and revenues are linear over the relevant range.c. Changes in beginning and ending inventory levels are insignificant in amount.d. Sales mix changes are irrelevant. 2. The term relevant range, as used in cost accounting, means the rangea. over which costs may fluctuateb. over which cost relationships are validc. of probable productiond. over which production has occurred in the past 10 years3. How would the following be used in calculating the number of units that must besold to earn a targeted operating income? Price per unit Targeted operating income Denominator Numerator Numerator Numerator Not used Denominator Numerator Denominator 4. Information concerning Korian Corporation’s product is as follows: Sales $300,000 Variable…
- Please provide some explanation for the below question: 1. When applying lower of cost or market, market value A. is defined as the selling price B. should not exceed the net realizable value C. should not exceed the net realizable value less an allowance for a normal profit margin D. should not exceed the net realizable value plus an allowance for a normal profit marginWhen allocating the transaction price to performance obligations when a stand-alone selling price is not readily observable, GAAP suggests all of the following approaches except the expected market margin approach. residual approach. expected cost plus a margin approach. adjusted market assessment approach.What is false about cost plus mark-up pricing? a. attempts to apply or allocate fix costs to pricing strategy b. not intuitive c. good example of value-based pricing d. vulnerable to bad sales estimates e. All are correct f. All are incorrect
- When applying lower of cost or net realizable value under the FIFO, average cost, or specific identification method, market value a.is defined as the selling price. b.should not exceed the net realizable value plus an allowance for a normal profit margin. c.should not exceed the net realizable value less an allowance for a normal profit margin. d.is defined as the net realizable value.Which of the following performance measures will increase if inventory decreases and all else remains the same? Return on Residual Investment Income A) B) Yes Yes No Yes Yes No D) No No Multiple Choice Choice C Choice D Choice A19. Which of the following is not considered a disadvantage of LIFO?Select one:A. LIFO matches more recent costs against revenues providing better matching.B. LIFO may have a distorting effect on a company's balance sheet.C. LIFO does not usually approximate physical flow of inventory.D. LIFO can lead to poor buying habits to manipulate expenses.