Answer:
FiFo method as prices are continuously increasing
Explanation:
Date Units Cost Per Unit Cost
June 1 150 units $ 1,040 6.93
June 10 200 units 1,560 7.8
June 15 200 units 1,680 8.4
June 28 150 units 1,320 8.8
$5,600
As the unit price is increasing the method which yields the highest gross profit would be FIFO.But in some cases the income is overstated as the beginning inventory is too old to account for . Similarly Lifo gives lower net income but that too is not very beneficial when the inventory is almost obsolete.
The average method gives a measure in between FIFO and LIFO.
Answer:
c. evaluate a company's ethical culture
Explanation:
Ethics auditing is used to systematically evaluate an organization's effectiveness when it comes to performance ethics and programs. This will determine both the internal and external impacts of ethical performance. It also helps in identifying the problems and risks in outgoing activities. This way the company can take necessary measures to correct, adjust or eliminate any ethical concerns that may arise.
Answer:
Explanation:
a ) We shall calculate the NPV of the project . If it is positive , then money can be invested
Cash outflow in the beginning =1000
Present value of perpetual annuity of 100 at 9.5 %
100 / .095
= 1052.63
which is more than initial cash outflow
So NPV is positive
Hence money can be invested.
b )
If machine takes one year to build , first year cash outflow of 100 will be absent
Present value of 100 after 1 year
= 100 / 1.095
= 91.32
So present value of annuity
= 1052.63 - 91.32
= 961.31
This is less than 1000 so
NPV is negative.
Hence money can not be invested.
Answer:
Pc = 8294.4 units per week
Explanation:
Pc = U * A * ( N * sw * Hsh * Rp )/ n
Where
Pc = production capacity in terms of availability and utilization per week
U = utilization factor = 80% = 0.8
A = availability = 90% = 0.9
N = number of work centers = 8
sw = number of shifts per week = 10
Hsh = number of hrs per shift = 8
Rp = hourly production rate = 18 units /hr
n = number of distinct operations = 1 , same machine & part
So therefore,
Pc = 0.8 * 0.9 (8 * 10 * 8 * 18)/ 1
Pc = 8294.4 units per week
Answer:
c. Increase collision deductible to $500.
Explanation:
The adjustment of Increase collision deductible to $500 would allow Jerry to meet his goal.
