Explain why an ice cream stand would not use the LIFO method of inventory costing.
Question:
Explain why an ice cream stand would not use the LIFO method of inventory costing.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
IFRS prohibits LIFO due to potential distortions it may have on a companys profitability and financi...View the full answer
Answered By
Hardik Dudhat
I am semi-qualified Chemical Engineering ,I have scored centum in accounting in my senior secondary and in my graduation. I have always helped my fellow students with their concerns on the subject, i have tutored on various tutoring sites in the past and also have taken home tuitions for degree and MBA students. As a tutor, I don't want my students to just get a solution, I want them to understand the concept and never have a doubt in that area thereon and i believe in excelling and not in educating.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Why do companies adopt the LIFO method of inventory costing? Your discussion should include the effects on both the income statement and balance sheet.
-
Explain the dollar-value LIFO method of inventory valuation. What are the advantages of dollar-value LIFO as compared to simple LIFO?
-
Kimio Nakimura owns an ice cream stand that she operates during the summer months in Jackson Hole, Wyoming. Her store caters primarily to tourists passing through town on their way to Yellowstone...
-
Use a calculator to obtain solutions correct to the nearest hundredth in Problems 4954. 0.02x +0.831x + 0.0069 = 0
-
Define each of the components of the classic time-series decomposition method. Explain how the trend, seasonal, and cyclical components are determined.
-
The adjusted trial balance for Fraser Valley Services Ltd. is given in E4-8. In E4-8 The unadjusted and adjusted trial balances follow for Fraser Valley Services Ltd. at the end of its fiscal year,...
-
When statistical sampling methods are used in determining inventories, what additional requirements must be met by the auditor?
-
A U.S.-based multinational company has two subsidiaries, one in Mexico (local currency, Mexican peso, MP) and one in Japan (local currency, yen, ¥). Forecasts of business operations indicate the...
-
Altira Corporation provides the following information related to its inventory during the month of August 2024 August 1 Inventory on hand-2,300 units; cost $6.40 each. August 8 Purchased 11,500 units...
-
When Timmy was 18 months old, his mother stood behind him, helping him throw a large ball into a box. As his skill improved, she stepped back, letting him try on his own. Using Vygotsky's ideas,...
-
Knowing how much inventory is on hand helps managers make decisions about how much merchandise to purchase. Too much inventory means the business has not sold what it purchased and its money is tied...
-
a. Assumes that old goods are sold first and that goods which are on hand are valued at current prices. b. Assumes that new goods are sold first and inventory is valued at old prices. c. Assumes that...
-
Media commonly report survey results giving the sample size and some percentage, but technology typically requires the actual number of particular responses instead of the percentage. In a Harris...
-
What is the KaldorHicks criterion or test? What is the difference between the Pareto principle and the KaldorHicks criterion? What are the advantages and the disadvantages of such criterion?
-
A single card is selected from an ordinary deck of cards. The sample space is shown in Figure 12.2. Find the probabilities in Problems 24-27. Figure 12. 2 a. \(P\) (five and a jack) b. \(P\) (five or...
-
Some numbers are shown in Table 13.1. Explain where the numbers in Problems 18-22 come from. Table 13. 1 The 36 hands called "other straight flush" Royal flush 4 hands Other straight flush 36 hands...
-
Show the result of the moves on Rubik's cube indicated in Problems 3-29. Remember that R, F, L, B, T, and U mean rotate \(90^{\circ}\) clockwise the right, front, left, back, top, and under faces,...
-
Show the result of the moves on Rubik's cube indicated in Problems 3-29. Remember that R, F, L, B, T, and U mean rotate \(90^{\circ}\) clockwise the right, front, left, back, top, and under faces,...
-
Per capita real GDP in country S is only half as great as per capita real GDP in country T. Country T's rate of economic growth is 4 percent. The government of country S, however, enacts policies...
-
How much more interest will be earned if $5000 is invested for 6 years at 7% compounded continuously, instead of at 7% compounded quarterly?
-
Latesha, a single taxpayer, had the following income and deductions for the tax year 2017: INCOME: Salary $ 80 Business Income 25 Interest income from bonds 10 Tax-exempt bond interest 5 TOTAL INCOME...
-
Jennings Company uses the weighted average method for its process costing system. The Molding department at Jennings began January with 80,000 units in work-in-process inventory, all of which were...
-
Refer to Exercise 25. Prepare a production cost report for Jennings Company for the month of January using the format shown in Figure 4.9. In exercise 25 Jennings Company uses the weighted average...
-
As we have seen in this course, virtually every generation has felt that the existing threat to its privacy was unprecedented in nature. That said, the sheer capacity to collect metadata which exists...
-
In 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in 1982 was $20. What was the expected cost in the year 2017 if we project this rate of inflation on the cost? (Assume...
-
Alice is single and self-employed in 2023. Her net business profit on her Schedule C for the year is $192,800. What are her self-employment tax liability and additional Medicare tax liability for...
Study smarter with the SolutionInn App