What criteria should a company use to decide between alternative inventory cost flow assumptions? Evaluate the relevance of the LIFO cost flow assumption. Why is LIFO not allowed under international accounting standards?
If Mel Jones (Classroom Demonstration Exercise 2) amortized his truck by the units-of production method, calculate the first year’s amortization based on the following: cost $6,000; residual value $1,000. Estimated mileage is 100,000 kilometres. The truck was driven 8,000 kilometres in year 1.
Nancy is a widow with two teenage children. Nancy’s gross income is $ 3,000 per month, and taxes take about 30% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should...
After constructing a table that is similar to Table 6.2 and shows all possible outcomes of tossing four coins at once, find the following. a. Find the probability that all four tosses are the same (all heads or all tails). b. Find the probability that the four tosses are not all the same. c. What...
Voss Manufacturing Company established the following standard price and cost data.Sales price ................. $30 per unitVariable manufacturing cost .......... $14 per unitFixed manufacturing cost ........... $65,000 totalFixed selling and administrative cost ....... $48,000 totalVoss planned to...
The market price is $925 for a 19-year bond (1,000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual basis (4 percent semiannually). What is the bond\'s yield to maturity? The bond\'s yield to maturity is ?% (Round to two decimal places.)
Jim Watanabe looked around his new office. He couldn’t believe that he was the assistant director of information technology at Petrie Electronics, his favorite consumer electronics retail store. He always bought his new DVDs and video games for his Xbox 360 at Petrie. In fact, he bought his...