View PoliciesCurrent Attempt in ProgressWhen using the lower of cost and market rule in Canada, the market value is most commonlynet present value.selling price less profit margin.O replacement cost.• net realizable value.

Lower of cost or market Rule - This rule states that business entity should record the cost of…

Answered: When using the lower of cost and market…

When using the lower of cost and market rule in Canada, the market value is most commonly Onet present value. O selling price less profit margin. replacement cost. net realizable value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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When using the lower of cost and market rule in Canada, the market value is most commonly
net present value.
selling price less profit margin.
O replacement cost.
• net realizable value.

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On the cost-volume-profit graph, which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged)? а. Decrease in selling price per unit O b. None of the given answers С. Decrease in number of units sold d. Decrease in variable cost per unit е. Increase in fixed costs
The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some costs vary inversely with volume. Production will equal sales. Costs are linear and continuous over the relevant range. Price will remain fixed.
Which of the following statements is true? I. Incremental analysis is an analytical approach that focuses only on those revenues and costs that will not change as a result of a decision. II. When expressed on a per unit basis, fixed costs can mislead decision makers into thinking of them as variable costs. II. To estimate what the profit will be at various levels of sales volume, multiply the number of units to be sold above or below the break-even point by the unit contribution margin. Statements I and III are true. Statements II and III are true. All of the statements are true. None of the statements are true.
A company manufactures a single product, product Y. It hasdocumented levels of demand at certain selling prices for thisproduct as follows: Demand Selling price per unit Cost per unit Units £ £ 1100 48 24 1200 46 21 1300 45 20 1400 42 19 Required:Using a tabular approach, calculate the marginal revenues andmarginal costs for product Y at the different levels of demand, andso determine the selling price at which the company profits aremaximized.
Which of the following statements is true? a. When production is greater than sales, operating income will be equal under variable costing and absorption costing b. When production is greater than sales, operating income will be lower under absorption costing than variable costing. c. When production is equal to sales, operating income will be greater under variable costing than absorption costing. d. When production is less than sales, operating income will be lower under absorption costing than variable costing.
There are two questions, please find the answers
If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration Pricing
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On the cost-volume-profit graph, which of the following would result into an increase in the breakeven point (Assuming other factors remain unchanged)? O a. None of the given answers O b. Increase in number of units sold O c. Decrease in variable cost per unit O d. Decrease in selling price per unit Oe. Decrease in fixed costs
26..
Target profit is added to what other financial statement line item, or element, to determine the numerator in the overall target contribution margin (CM) calculation in break-even analysis? Variable costs Fixed costs Net income after taxes Operating profit
On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answers