Explain high-low method.

Q: The management of desires to come up with a costing record that presents the movement or issuance…

A: FIFO is the inventory valuation method, which says that inventory which is coming first in the…

Q: Lewis Corporation Lewis Corporation had traditionally used the FIFO method of inventory valuation.…

A: Inventory :- A company's inventory is a valuable asset. It is a significant source of revenue.…

Q: ommencing the month of sale. he monthly amortization was P240,000 inclusive of 12% interest on the…

A: Case 3) The perpetual inventory method seems to be an inventory management approach that uses an…

Q: DM. Inc. worked on a P10,500,000 contract in 2016 to construct an office building. During 2016, DM.…

A: Given data, Contract price =P10,500,000 Construction in progress =P3,780,000 Accounts receivable=…

Q: a. In its December 31, 2020 consolidated statement of retained earnings, what amount should Pare…

A: When a company buys majority of shares in another company, the other company becomes the minority…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: Define Volcker rule

A: Volcker Rule is a regulation that implies restrictions on the banks to involve in the stock market…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: Assume that the assets are converted to cash at the estimated current values and the business is…

A: 1. When a company liquidates, there are various creditors a company has to pay. Types of creditors…

Q: What is the equivalent rate of 10% compounded semi-annually to compounded daily? 9.7594% 9.6594%…

A: Computation of 10% compounded semi-annually: Effective rate=1+10%22-1=1.1025-1=10.25%

Q: Calculate NRV method?

A: Joint cost allocation is needed to be done when after the split-off point a product is changed into…

Q: Fareed purchases a bond, newly issued by the Big Time Corporation, for $20,000. The bond pays $1,000…

A: Principal amount: Principal amount is the original amount of money borrowed by a person. In bonds,…

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: Define alpha value.

A: Alpha is a value that is used in computation of expected return from an investment. Expected return…

Q: a. What amount of income should be reported for the current year if the percentage of completion…

A: Formula: Revenue Recognized=  Cost Incurred to DateEstimated Total Cost×Contract Price-Revenue…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000.…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: explain using the IRAC model.

A: IRAC model refers to Issue, Rule, Application as well as conclusion which is considered as an…

Q: 3. Land Construction Co. has consistently used the percentage of completion method of recognizing…

A: Percentage of completion method recognizes the profit with respect to the revenue & costs that…

Q: what about quesitons E and F?

A: Work in progress (WIP) also called work in process, is inventory that has begun the manufacturing…

Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…

A: Formula: Variable cost per unit = ( High cost - low cost ) / ( Higher production units - lower…

Q: Define Top-down analysis

A: Introduction: Analyst is the person who gathers the data after they interpret and validate the data…

Q: Distinguish between the single-rate and the dual-rate methods.

A: Cost Allocation: The process of assigning the cost to the cost object is cost allocation. The cost…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: Explain the Relationship to the PW Analysis?

A: The question is based on the concept of present worth analysis of a project or cash flows.

Q: Define discriminant function

A: DISCRIMINANT FUNCTION- If we have a set of K classes then we may define a set of K discriminant…

Q: Explain the term single rate method.

A: