Which method yields the highest net income? Does net income using weighted average fall between that using FIFO and LIFO? If costs were rising instead of falling, which method would yield the highest net income?

Q: How much is the gross profit variation due to

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Q: How does the lower of cost or market relate to profit margins?

A: Answer: The lower cost or market implies that, depending on how historical costs and market costs…

Q: financial variables that affect the price-earning ratio

A: The price-to-Earning ratio is derived by dividing the Market Price of Share by Earning Per Share.…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: What are the three main profitability ratios, and howis each calculated?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Why is NOPAT a better performance measure than net income?

A: NOPAT stands for Net Operating Profit After Tax. It refers to the organization's earnings before tax…

Q: What is the possible link between the following ratios: (a) profitability and efficiency (b)…

A: SOLUTION A- Relation between profitability and efficiency ratios   Profitability ratio depicts how…

Q: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

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Q: The difference between gini coefficient of market income and gini coefficient of disposable income…

A: The difference between gini coefficient of market income and gini coefficient of disposable income…

Q: a) What is the gross margin now?       (b) What is the net operating income now?     (c) What…

A: Gross margin is the difference between sales and the cost of goods sold.   Net operating income is…

Q: Will the profit calculated on the absorption cost basis be higher or lower than the profit…

A: The key difference in profit under marginal costing and absorption costing technique comes because…

Q: Which one of the following is most closely related to the net present value profile? A: Payback B:…

A: The net present value method is used to evaluate the investment projects. We can evaluate the…

Q: Requlred: Calculate the increase or decrease in the operating income in both alternatives.

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost allocation and…

A: Constant gross-margin percentage NRV method: Constant gross margin percentage NRV method is a method…

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: what is the difference in preparation of mutistep incomestatement and single step income statement?

A: Multi step income statement refers to the report that showcases the company's revenues, expenses,…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: What is the gross profit declined due to increase in cost in the amount?

A: Gross profit refers to the profit calculated after considering the costs associated with the…

Q: thod of income approach that consider the factor

A: Introduction: When valuing a property that generates a source of income, the income technique is…

Q: What are the different profitability ratios?

A: Profitability ratios are the measure which is used to depict the profitability position of the…

Q: Which of the following is not a measure used by the financial perspective lens of the balanced…

A: A balanced business scorecard consists of four perspectives: Financial perspective customer…

Q: 1. Prepare an income statement using the a. Net realizable value method b. Reversal cost method

A: Net realizable value refers to the value which is realized upon the sale of assets minus cost…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: It is the net after tax ratio with sales revenues?

A: Sales revenue is the revenue which has been earned by the company for the selling of the products or…

Q: a) What is the gross margin now? Gross margin b) What is the net operating income now? Net operating…

A: Solution Concept mathematically Gross margin     = sales – cost of goods sold Net operating income…

Q: What is the relationship between NPV and profitability index (PI)?

A: The concept of net present value is used to decide whether to invest in an investment or not. It is…

Q: Use the information provided below to answer the following questions: 3.1 Calculate the total…

A: Marginal income is computed by subtracting the variable cost from the sales.  Net profit is…

Q: Explain Income (FFO) Multiple?

A: FFO refers to funds from operations. It is widely used in real estate investment trust (REIT)…

Q: How can we apply Annual-Worth Analysis for the calculation of Unit-Profit or Unit-Cost Calculation?

A: Annual worth analysis is an analysis of value of an investment on an annual basis. It measures the…

Q: What do the Profitability ratios show?

A: Profitability Ratio Profitability Ratio is basically a tool to assess a company's ability to…

Q: In a period of inflation, which cost flow method produces the highest net income? O FIFO method O…

A: There are various methods for determining the ending inventory and cost of goods sold. Some of the…

Q: What is the price/earnings ratio, and how is it calculated?

A: Earnings per share (EPS): It refers to the share of earnings earned by the shareholder on each…

Q: ases? or only in t

A: The explanation is given below ,

Q: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…

Q: What are the impotance of Earning per Share and Diluted Earnings per Share in making economic…

A: Diluted EPS= Net Income−Preferred DividendsWASO+CDS​ where: EPS=Earnings per share WASO=Weighted…

Q: a) average fixed cost, b) average variable cost, and c) total profit?

A: Markup Percentage = ((Selling Price - Cost)/Costs) * 100 Fixed and Variable cost - We know that…