14. In periods of inflation, use of FIFO (as opposed to LIFO) would cause: a GrosS Profit to he bigher

Q: c. The internal rate of return is between what two whole discount rates (e.g.. between 10% and 11%,…

A: The project can be evaluated based on discounted cash flow methods. The IRR method is used to…

Q: LC8Q3.Which of the following is a variable cost? Loan interest rate Salary Rent Salesperson s…

A: A variable cost is a type of cost which changes in accordance to the change in the level of output.

Q: In a hyperinflationary economy, amounts not expressed to the measuring unit current at the end of…

A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies".

Q: In an inflationary economy, the use of FIFO maximizes the cost of goods sold and minimizes the cost…

A: In an inflationary economy, the prices of goods keep on rising until the economy slows down. Thus,…

Q: 21. The peso amount of sales needed to attain a desired profit is calculated by dividing the CM…

A: Contribution Margin Ratio:-It is a difference between a company's sales and variable cost which can…

Q: How are the floor and ceiling limits calculated as per the lower of cost or market (LCM) method…

A: LCM that is lower of cost or market value method says that inventory should be valued at a price…

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: 4. The difference of Net Sales and Cost, when the Net Sales is less than its Cost. A. Break-even B.…

A: Sale means the amount  received from customer on selling the goods where as cost means the amount…

Q: Which of the following statements is true about the present value factors? The present value factor…

A: Present value interest factor is used to determine the present value of series of future annuities.…

Q: 29.The calculations of a discount rate can be based on all the following approaches among others…

A:

Q: The WACC is a weighted average of the costs of debt, preferred stock, and common equity. Would the…

A: Weighted average cost of capital  or WACC  represents cost of capital across  all sources i.e.,…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Economic theorists expanded on the Keynesian aggregate supply model in the late 1940s, broadening it…

A: Three part supply curve is called as the short-run aggregate supply curve of Keynesian aggregate…

Q: In Know Your Product E1, we discussed inflation shielding as a product feature in annuities. What…

A: Inflation is a situation in an economy in which prices of products and services rises. During…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: What is the concept of present value? How does it affect inflation

A: Increase in general price levels in an economy is known as inflation. Due to inflation, the cost of…

Q: Let P(x) be the annual profit for a certain product, where x is the amount of money spent on…

A: Solution- (A)  P(o) represents the amount of annual profit allocated when x=0 or when no money was…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

Q: Which of the following is the correct calculation of rate of mark-up on selling price? a.…

A: Rate of Markup on Selling Price:-Sales price minus the unit cost that divides that number of unit…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: which one of the following will tend to increase the length of the credit period? Decrease in…

A: The length of credit period is a time duration provided to its consumer to pay back the amount of…

Q: What does it mean when ROI has decreased even though net income hasincreased?

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: Which of the following is not a factor in explaining why the present value of a future dollar is…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: The increase (decrease) in gross profit due to change in overall quantity sold is:

A: As the student has asked specific question so we are answering that question only.

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: Consider the following payoff table that represents the profits earned for each alternative (A, B,…

A: Given that  A,B and C are alternatives of profit earned  and S1, S2 ,S3 are states of nature .…

Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…

A: Solution Rate of Interest  The rate of interest is that the quantity a lender charges for the use of…

Q: What is the present breakeven point in revenues?

A:

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Introduction:

Q: Financial leverage indicates -

A: Financial Leverage: It is the use of debt capital for purchasing more assets. The company takes…

Q: What is the difference between cumulative return and annualized return/CAGR). Provide an example

A: There are two methods to measure the rate of return annual basis and cumulative basis.

Q: Is a cap rate the same as an IRR? Which is generally greater? Why?

A: The capitalization rate or cap rate cant be considered as similar to the IRR or the internal rate of…

Q: 9) The main sources of cost-push inflation are increases in A) aggregate demand and real wage rates.…

A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…

Q: 7 If yamaha company used variable cossting, what amount of income before income taxes would it have…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: A change in money demand or a shift in the money demand curve is caused by a change in * the…

A: the increase demand of money shift the demand curve up.

Q: How much is the realized gross profit in 20x1?

A: Total gross profit to be recognized later = Installment accounts receivable at the year end * Rate…

Q: In a period of inflation, which cost flow method produces the highest net income? O FIFO method O…

A: There are various methods for determining the ending inventory and cost of goods sold. Some of the…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: Which of the below statements refers to the concept of deferred payment? a. It is the original…

A: Temporary delay in the payment completely or partially is called deffered payment.

Q: Which method does not consider the time value of money? Choose the correct. A. Net present value…

A: Net Present Value or NPV is a technique which determines the net present value of the project and it…