User Account

All Pages

Explain what ways would a reduction in inventory help

Assignment Help Accounting Basics
Reference no: EM132759535

An executive in a merchandising company receives an annual bonus equal to 5% of net income. Historically, the company has calculated cost of goods sold and ending inventory using LIFO and has maintained 30,000 of units in inventory for the last ten years. The executive is recommending the company reduce the number of units in year-end inventory to 1,000. Over the ten-year period, the cost per unit of inventory has increased from $60 per unit to $110 per unit.

Problem 1: In what ways would a reduction in inventory help the company and would you approve the proposal to move from LIFO to FIFO? Why, or why not?

Reference no: EM132759535

Questions Cloud

Calculate the monthly break-even point in monetary sales : Calculate the Monthly break-even point in monetary sales. Xi Company is the exclusive Iowa distributor of lawn mowers for a small manufacturing company.
Multidisciplinary approach to ERP implementation : What are the payoffs in taking a multidisciplinary approach to an ERP implementation? What departments are affected and what is the typical time frame?
Record the sale of the equipment at the end of third year : Murphy's Deli uses straight-line depreciation for all equipment. Record the sale of the equipment at the end of third year
Research biographies of leaders and leadership theories : Use the library, your course materials, and the Internet to research biographies of various leaders and leadership theories. Then, respond to the following.
Explain what ways would a reduction in inventory help : Explain what ways would a reduction in inventory help the company and would you approve the proposal to move from LIFO to FIFO? Why, or why not?
Transportation Logistics Management : Review and locate one Code of Federal Regulation that you feel is the most important one that is listed in relevance to our industry.
What is the payback period of both projects : Sheridan Crafts Corp. management is evaluating two independent capital projects that will each cost the company $210,000. What is the payback period
What did you already know about your leadership style : As you grow and learn more about leadership, thinking about your own skill sets and goals is important. Start thinking about your own leadership goals.
Alternative strategies to control product shortages : Since the product shortages of N95 and N99 masks, hand sanitizers, and wipes as a result of COVID-19:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd