Allegiance, Inc. has $149,000 of inventory that suffered minor smoke damage from a fire in...
50.1K
Verified Solution
Link Copied!
Question
Accounting
| Allegiance, Inc. has $149,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $55,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $27,000. There the goods could be sold for $104,000. What alternative is more desirable and what is the relevant cost for that alternative? |
Sell "as is," $149,000.
Clean and ship to outlet center, $27,000.
Clean and ship to outlet center, $131,000.
Clean and ship to outlet center, $176,000.
Neither alternative is desirable, as both produce a loss for the firm.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.