Explain why it is sometimes best to sell inventory for less than the amount paid for it.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 41% (17 reviews)
The amount paid for inventory is a sunk cost Once a company has the inve...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Question Posted:
Students also viewed these Managerial Accounting questions
-
Explain why it is sometimes difficult to apply the MR = MC rule in actual business situations.
-
Explain why it is important for ratings in an EFE Matrix to be 1, 2, 3, or 4 for any opportunity or threat.
-
Explain why it is not wise to accept a null hypothesis.
-
Problem 9- 3A Estimating and reporting bad debts P2 At December 31, 2013, Hawke Company reports the following results for its calendar year. Cash sales . . . . . . . . . . $ 1,905,000 Credit sales ....
-
Repeat Worked-Out Problem 21.3, but assume instead that the salesperson's personal cost is C(H) = 1,000 + 4H2, and this marginal cost is MC = 8H. In addition, while each car generates a profit of...
-
Determine whether the following trajectories lie on a circle in R 2 or sphere in R 3 centered at the origin. If so, find the radius of the circle or sphere and show that the position vector and the...
-
What rate of interest compounded annually is involved if a. an investment of \($10\),000 made now will result in a receipt of \($23\),674 ten years from now? b. an investment of \($2\),000 made 18...
-
On January 1 Revis Consulting enters into a contract to complete a cost reduction program for Green Financial over a six-month period. Green will pay Revis $20,000 at the end of each month. If total...
-
Identify an organization of your choice. Explain why you selected this organization. Identify who you believe to be the organizations key stakeholders and identify their role in the organizational...
-
Consider the trash bag problem. Suppose that an independent laboratory has tested 30- gallon trash bags and has found that none of the 30- gallon bags currently on the market has a mean breaking...
-
Suppose you are a manager in a manufacturing company. Your accountant has just presented you with a very detailed cost analysis for a decision about whether to outsource or make a component of a...
-
Emily Adessa is an attorney employed by a large law firm at a salary of $85,000 per year. She is considering whether to become a sole practitioner, which would probably generate annually $410,000 in...
-
Find the distance from to P 2 to P 2 . P 1 = (0, 0, 0) and P 2 = (1, -2, 3)
-
What is financial risk, and how does it arise?
-
In what situation should a firm pay a stock dividend?
-
Provide an example of a good externality, that is, one that increases a projects true NPV.
-
Define the following terms: a. Capital budgeting; strategic business plan b. Net present value (NPV) c. Internal rate of return (IRR) d. NPV profile; crossover rate e. Mutually exclusive projects;...
-
Mike, Nora, and Cleona are shareholders in National Business, Inc. All of the shareholders are Nationals a. owners. b. directors. c. incorporators. d. officers.
-
Match each of the key terms above with the definition that best fits it. Phased installation ____ A testing technique in which participants examine program code for predictable language-specific...
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
For the international trade market for bicycles shown in Figure 8.5, demonstrate that a rather large tariff, for instance, a tariff that resulted in imports of 0.33 million bicycles, would not be an...
-
Variable and fixed costs in the wine industry, decision making A Votre Sant: Product Costing and Decision Analysis in the Wine Industry3 Background A Votre Sant (AVS) is a small, independent winery...
-
1. What are sunk costs? Explain whether they are relevant costs. 2. What is an opportunity cost that is relevant in a make-or-buy decision?
-
1. What is an opportunity cost? 2. Are avoidable costs relevant? Explain. 3. What does the term breakeven point mean?
-
Landscape, Inc., is a lawn and garden service. The company originally specialized in serving small residential clients; recently it has started contracting for work on larger office building grounds....
-
1. What is the amount of 20 equal semi-annual deposits that can provide ten semi-annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 15, and subsequent withdrawals...
-
Suppose the dividends for the Seger Corporation over the past six years were $1.49, $1.57, $1.66, $1.74, $1.84, and $1.89, respectively. Assume that the historical average growth rate will remain the...
Study smarter with the SolutionInn App