By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
C. Advertising is usually directly paid, and publicity is usually indirectly paid. D. Advertising provides an immediate feedback loop, and publicity does not. E. Publicity always has a much greater reach than advertising. 33. For a message to be communicated effectively, the sender and receiver must have a mutually shared field of experience, which means a similar __________ they apply to the
Selecting vendors from the expense test, complete the following steps: • Agree stated payment terms and vendor information to vendor master. • Verify that written reconciliations to statements were performed. b. Tender Process • Review and document the tender process. • Determine whether the provisions of the tender are considered, such as, freight terms, discounts, and service.
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
Currency risk- if unexpected changes in currency values affect the value of the firm 4. Identify and describe the ways in which a US company can participate in international commerce. 5. The price of a currency forward contract is determined by the relationship between interest rates of the two countries in question and the time period covered by the contract. Is this statement exactly true, partly true or false?
C. Variable cost. D. Step-wise variable cost. E. Standard cost. 2. An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is: A.
The Financial Accounting Standards Board, which is a private not-for-profit organization, decrees the financial accounting and reporting standards. The FASB offers several solutions for revenues recognitions. One of them is the percentage of competition method. According to the FASB 605-35-25-57, “The percentage-of-completion method is considered preferable as an accounting policy in circumstances in which reasonably dependable estimates can be made and in which all the following conditions exist: Contracts executed by the parties normally include provisions that clearly specify the enforceable rights regarding goods or services to be provided and received by the parties, the consideration to be exchanged, and the manner and terms of settlement. The buyer can be expected to satisfy all obligations under the contract.The contractor can be expected to perform all contractual obligations”.
The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1. Company G’s dedication from management, employees, and suppliers to delivery high quality products and great customer service would be a core competency. A high credit rating coupled with a low debt:equity ratio 2. Company G is financially sound due to a low debt:equity ratio and high credit rating. Reduced costs thanks to efficient production 3.
It establishes a selling price hierarchy for determining the selling price of each product or service, with vendor-specific objective evidence (VSOE) at the highest level, third-party evidence of VSOE at the intermediate level, and a best estimate at the lowest level. It replaces “fair value” with “selling price” in revenue allocation guidance, eliminates the residual method as an acceptable allocation method, and requires the use of the relative selling price method as the basis for allocation. It also significantly expands the disclosure requirements for such arrangements, including, potentially, certain qualitative disclosures. ASU 2009-13 will be effective prospectively for sales entered into or materially modified in fiscal years beginning on or after June 15, 2010 (i.e., the year beginning January 1, 2011, for us). The FASB permits early adoption of ASU 2009-13, applied retrospectively, to the beginning of the year of adoption.
Elements of a Contract BUS 670: Legal Environment of Business Elements of a Contract According to (Business Dictionary, 2012), a contract is defined as “A voluntary, deliberate, and legally binding agreement between two or more competent parties” (para. 1). A contract is apart of everyday life. It helps to validate trust and can be used for employment, products and services, residency, and purchases. It allows two or more parties to make promises to each other and not have to worry whether or not the promise will be honored (Mallor, et al, 2010, p. 290).