Using the LIFO method of inventory valuation will always produce the same results whether a company uses perpetual or periodic inventory costing methods
Indicate whether the statement is true or false
FALSE
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The factor that most distinguishes a Subchapter S corporation from a "C corporation" is:
a. its organizational structure. b. its treatment of shareholders for income taxation purposes. c. its requirement of restrictive transfer rights of the shares. d. its small cost of formation.
The underlying difference between absorption costing and variable costing lies in the treatment of:
A. fixed manufacturing overhead. B. variable selling and administrative expenses. C. variable manufacturing overhead. D. direct labor. E. fixed selling and administrative expenses.
The activity-based flexible budget provides a more accurate benchmark against which to compare actual costs than does a conventional flexible budget.
Answer the following statement true (T) or false (F)
In 10 years, Hopkins Company plans to receive $9,000 cash from the sale of a machine that has a $5,000 book value.YearFV of $1 at 8% FV of an ordinary annuity at 8% PV of $1 at 8% PV of an ordinary annuity at 8%1 1.080 1.000 0.926 0.926 2 1.166 2.080 0.857 1.783 3 1.260 3.246 0.794 2.577 4 1.361 4.506 0.735 3.312 5 1.469 5.867 0.681 3.993 6 1.587 7.336 0.630 4.623 If the firm is subject to a 30% income tax rate and has an 8% after-tax hurdle rate, the correct discounted net cash flow would be:
A. $4,167.00. B. $2,916.90. C. $4,722.60. D. $3,611.40. E. None of the other answers is correct.