What is the most common constraint faced by merchandisers?

Q: explain how sunk costs create a barrier to entry into the market place.

A: Sunk costs are expenses that can not be retrieved if a corporation wishes to leave a market.

Q: What is lower of cost/market, and why is it used? Provide an example.

A: Inventory is a term which depicts the amount of finished goods prevailing in the business. The…

Q: In a make versus buy decision which of the following factors is not relevant? fixed production…

A: Make or buy decision:   Every company wants to maximize its net income. The best method to increase…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: What is intrinsic value or price?

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: What does the lower-of-cost-or-market (LCM) rule require?

A: Lower-of-cost-or-market: The lower-of-cost-or-market (LCM) is a method which requires the reporting…

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: how is the selling price computed

A: Formula: Selling price=Cost100%-Gross profit ratio

Q: What is the law of supply?

A: When the price of any given good increases, the supply of the said good also increases. But this…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: What is monopoly?

A: In market, there are various types of market structures, monopoly is one of them.  Monopoly market…

Q: What is the arm's length principle and how does it relate to transfer pricing?

A: Transfer pricing is the process of figuring out the costs associated with the acquisition, sale, or…

Q: What exactly are temporary differences? What types of transactions cause these differences?

A: Discrepancies among the carrying value of an asset or liability in the financial statements and its…

Q: What are product costs?

A: Product costs refer to the costs incurred by a business from manufacturing a product or providing a…

Q: What considerations should managers make when deciding whether to sell a product as-is or after…

A: One of the decisions related to the product is to sell or process further. There are certain factors…