Which of the following values is considered the market value when valuing inventory at lower-of-cost-or-market under U.S. GAAP?
A) sales price less the company's normal mark-up percentage
B) current replacement cost
C) cost plus the company's normal mark-up percentage
D) historic cost
B) current replacement cost
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The percentage-of-sales method leads to a budget set by market opportunities rather than by the availability of funds
Indicate whether the statement is true or false
The ________ is a good measure of forecast error when the underlying forecast has significant seasonality and demand varies considerably from one period to the next
A) MAD B) MSE C) MKE D) MAPE
Ferrero Corp manufactures gourmet dips along with potato chips flavored with Cajun spices
The market price for similar chips is $7. The management of the company desires a 30% net profit margin. The current costing data relating to this product are as follows. Direct materials $1.00 Direct labor 1.50 Manufacturing overhead 2.75 Nonmanufacturing costs 0.75 Requirement: Determine if Ferrero's current full-product costs meet its target cost. What will be an ideal response
The use of borrowed funds to increase the return on owners' equity is called
A. financial planning. B. investment management. C. management leverage. D. financial leverage. E. return on leverage.