Use LIFO to minimize income taxes. Operating income under this method is lowest when inventory unit costs are increasing , as they are in this case. (If inventory unit costs were going the opposite direction, income under FIFO would be lowest.) b. report the highest operating income? Use FIFO to report the highest operating income. Income under this method is highest when inventory unit costs are increasing , as in this situation. c. report operating income between the extremes of FIFO and LIFO? Use the average-cost method to report an operating income amount between the FIFO and LIFO extremes. This is true in this situation and in others when inventory unit costs are increasing or decreasing . d. report inventory on the balance sheet at the most current cost? Use FIFO to report inventory on the balance sheet at the most current cost. The most current inventory costs are expensed as cost of goods sold, leaving in ending inventory the most current costs of the

The distinction between a normal and an inferior good is

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600