In my opinion, reliability and consistency are two of the most important leadership skills for a small business to succeed for a long time. With these two characteristics a small business can build a returning customer base as well as a good rating on review websites. For example, many local barbershops provide consistent quality haircuts which builds reliability and in turn demand and returning customers.
Answer:
See Explanation below for the detailed answer
Explanation:
The following are income statement summaries for prior years comparing the change in inventory valuation from LIFO to FIFO
2015 Lifo : $ 530000 Tax : $159000 Profit $ 371000
Fifo : $ 561000 Tax : $ 168300 Profit $ 392700 <em>Difference; $21700</em>
<em />
2016 Lifo : $ 625000 Tax : $187500 Profit $ 437500
Fifo : $ 675000 Tax : $ 202500 Profit $ 472500 <em>Difference; $35000</em>
<em></em>
2017 Fifo: $644000 Tax : $ 193200 Profit $ 450800
Answer:
LIFO
Explanation:
It will be the one that give higher Cost of goods sold. We also know that:
Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory
So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.
Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.
Answer: $172,000
Explanation:
Its a little bit of a trick question throwing in the Debs that they want to sell for the month.
That figure is irrelevant because we are dealing with fixed costs so the company will still incur them regardless of what they sell.
The components of total budgeted fixed selling and administrative expenses are,
Advertising
Executive Salaries
Depreciation on office equipment and,
Others
Those are the only figures that should concern you. Adding them up would give us,
= 50,500 + 60,500 + 20,500 + 40,500
= $172,000
The total budgeted fixed selling and administrative expenses for February is $172,000
Explanation:
I don't think I know who is tell me the answer