User Account

All Pages

What ways would the change from lifo to fifo help executive

Assignment Help Accounting Basics
Reference no: EM132819773

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 the change from LIFO to FIFO help the executive personally?

Problem 2: Would you approve the proposal to move from LIFO to FIFO? Why, or why not?

Reference no: EM132819773

Questions Cloud

Product mix-brand equity-product and services : Discuss examples of product width, length, depth and consistency offered by this company and what the company may consider in defining its product mix.
What amount of realized gain should Dahlia Company recognize : Amelie Corporation on January 23, 2020 for P50 per share. What amount of realized gain should Dahlia Company recognize in selling these shares
How the company manifests the values : Review your chosen company's mission and values statements as well as other sources that provide insight into the company's values with regard to social.
Organizational theory : Pick one of the following terms for your research: code of ethics, conscious capitalism, corporate social responsibility (CSR),
What ways would the change from lifo to fifo help executive : An executive in a merchandising company receives an annual bonus equal. What ways would the change from LIFO to FIFO help the executive personally?
Evaluate myntra online organization business aims : Evaluate Myntra online organization's business aims and show how they relate to stakeholders.
Improve lean production and processes : Should line employees be involved in making recommendations to improve lean production and processes or should this decision-making be left only to management?
What is a horizontal merger : Mergers and acquisitions are gaining popularity as the health care industry continues to determine how to best provide services to a wide variety of patients.
Which of the statement of cash flows prepared : Which of the statement of cash flows prepared using the indirect method? A company that had a $500 increase in accounts receivable during a period

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