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Last in First out reserve increases

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Q: What happens when inventory in base year dollars decreases?
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How much is one Yuan in US Dollars?

The Chinese Yuan, often abbreviated as CNY, is the base currency of the Republic of China. As of this date, one Chinese Yuan is equivalent to approximately 0.16 United States Dollars.


What is capacity and inventory trade off?

To meet customer demand there are two extreme strategies:1. Have high enough capacity to meet peak customer demands (high equipment costs and high base labor costs) and produce goods as the orders come in (zero inventory costs). A shop selling ice cream cones would favor this strategy since orders are small and fast to make and inventory would be costly to keep.2. Have only enough capacity to meet average customer demand levels (lower capacity costs) and keep enough inventory to meet peak demand needs (maximum inventory costs). A brick factory might follow this strategy because orders are occasional but large and production time is long.In any specific instance, capacity and inventory level strategies may fall somewhere between these two extremes.


How do the implications of using lifo and fifo inventory affect the cost of goods sold?

LIFO stands for Last In First Out, so the last piece of inventory you create (including the costs for that last piece of inventory), is the cost base you use when you match sales against costs of goods sold (COGS) FIFO stands for First in First Out, so the oldest piece of inventory you have is what you match against your next sale. So, in a period of increasing input prices to your production (which is the general norm), under a LIFO model, you'll see higher prices immediately impacting your COGS, whereas under a FIFO model, it will take some time before those higher costs are impacting your COGS.


Paying an above-equilibrium wage rate?

There are some companies that choose to pay above average wage rate. They start their employees cents or dollars above the base wage.


What happens to the monetary base if the central bank lowers the discount rate?

If central bank lowers discount rate prices will go up and it will be monetarily more expensive.