Answer:
TRUE
Explanation:
Because the price is below equilibrium the quantity will fall and shortage will ocour. Because of that the price in the black market will become even higher than it was before the price control, making the price control counter productive.
So this additional demand is met at much higher prices than legal market.
Answer:
COGS= $11,600
Explanation:
Giving the following information:
Beginning inventory= 735 units for $8
During February the company produced 700 units for $12 per unit.
Units sold= 1,100
<u>Under the LIFO (last-in, first-out) method, the cost of goods sold is calculated using the cost of the last units produced.</u>
COGS= 700*12 + 400*8
COGS= $11,600
Answer:
Accounting information helps users make business and financial decisions.
Explanation:
Users of accounting information are divided into :
- Internal users
- External users
Internal users include : owners, managers, employees
External users include : shareholders, tax authority, regulatory bodies
Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.
Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.