User Account

All Pages

Show small inventory shortages

Assignment Help Cost Accounting
Reference no: EM1374692

An accounting firm has noticed that of the companies it audits, 85% show no inventory shortages, 10% show small inventory shortages and 5% show large inventory shortages. The firm has devised a new accounting test for which it believes the following probabilities hold: 

P(company will pass test | no shortage) = .90 
P(company will pass test | small shortage) = .50 
P(company will pass test | large shortage) = .20 

a. If a company being audited fails this test, what is the probability of a large or small inventory shortage? 
b. If a company being audited passes this test, what is the probability of no inventory shortage? 

Reference no: EM1374692

Questions Cloud

Financial report from the securities and exchange commission : financial reports from the Securities and Exchange Commission (SEC) would have contacted you all sooner however didn't know about you all until I did a search on Google for an answer.
Evaluate what is emma''s basis in her partnership interest : Evaluate what is Emma's basis in her partnership interest and find what is Laine's basis in her partnership interest what basis does the partnership take in property transferred by Laine
Illustrate what order quantity minimizes my total inventory : Storing this paper requires a specialized facility and holding costs are 32%. Assume a lead time of 1 week and that re are 250 working days in a year. Illustrate what order quantity minimizes my total inventory costs.
Illustrate what are ethical issues involved : Sears is losing market share, has been acquired by K-Mart and is eliminating jobs; Wall-mart is gaining market share and hiring. Illustrate what are ethical issues involved and which industry has a more ethical position."
Show small inventory shortages : show small inventory shortages and 5 percent show large inventory shortages. KK firm has devised a new accounting test for which it believes the subsequent probabilities hold
Illustrate what conflicts or barriers internal to barilla do : Illustrate what conflicts or barriers internal to Barilla doe JITD program create? Illustrate what causes se conflicts. As Giorgio Maggiali, explain how would you deal with se.
Classify the training objectives : Classify the training objectives and What will the trainee know as well as be able to do upon completion of training? Comprise the quality of performance and the conditions under which performance occurs.
Evaluate all materials and labor variances i : Evaluate all materials and labor variances in a spreadsheet by using a program like Excel. Be sure to add price, quantity, wage rate, and labor efficiency variances.
Question related to coase theorem : Based on the Coase theorem, if private parties can bargain without expense, then the private market will solve the problem of externalities

Reviews

Write a Review

Cost Accounting Questions & Answers

  Net salvage value

Evaluate Net Salvage Value

  Evaluate the annual net cost savings

Evaluate the annual net cost savings promised by the new etching machine.

  Find a statement of cash flows

Find a statement of cash flows using the indirect method for the Windsor Corp for the year 2008 - Show the Analysis of the Retained Earnings

  What are estate tax consequences of these transactions

Shortly thereafter, Bob sells the residence, liquidates the trust, and distributes the proceeds to the beneficiaries. Evaluate what are the estate tax consequences of these transactions to June?

  Compare all types of evidence

For every situation, show whether the first or second type of evidence is more reliable. Give a rationale for your choice.

  Determine the firm''s operating income

Which of the following will cause income determined with absorption costing to be higher than income determined with direct costing - An excess of cost of goods manufactured over cost of goods sold for the period represents

  Net asset balance of the subsequent categories

Explain what could be the reported net asset balance of the subsequent categories during 2011: permanent restricted, temporarily restricted, unrestricted

  Evaluate pattersons contribution margin per unit

Evaluate Patterson's contribution margin per unit and contribution margin ratio Evaluate the number of units Patterson must sell to break even

  Write the journal entries using the equity method

Write the journal entries for 20X2 on BID's books related to its investment In TIC Corporation, using the equity method.

  Find the following statements is correct

Jay sold land (a capital asset) to an unrelated party for $20,000 cash and a 9% note for $100,000 due in two years. His basis in the land was $40,000. Which of the following statements is correct?

  Evaluate the amounts for - cash received from customers

Had cash flow statement been prepared using the direct method, Evaluate the amounts for? Cash received from Customers.

  What is the yield that trevor could earn by selling the bond

What is the yield that Trevor could earn by selling the bonds today

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd