Health Care Accounting Mid Term Examination. Question 1:.

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Health Care Accounting Mid Term Examination
Question 1:
Regulatory compliance is very important to prevent the unethical behaviors and violations of the law. Therefore, as my opinion, I agree with the statement which is the regulatory compliance is a successful culture in any organization for five reasons; The reasons are quality improvement, Increase efficiency, trust and brand loyalty, risk management, and Competitive variation (Sherbet, 2014).
The five reasons are realistic evidence to take any organization toward successful work environment. The regulatory compliance help in preventing mistakes and Detection any fail before it happens in early levels. For example, in marketing area, it may be problem in the announcement level before
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The lack of compliance may produce undue risks for the organization.

Question 3: The various methods of inventory valuation that could be used in any organization Are classified differently. The common three inventory valuation methods are Last in First out (LIFO), weighted average, and First in First out (FIFO) (McVay, Kennedy, & Fullerton, 2013). First, LIFO is the method when organizations calculate inventory by assuming that they sell the latest stock first, so this method increase the current market rate of the value of sales and a closing inventory whose value is based on the prices that prevailed at the start of the year (Gapenski, & Pink, 2010). Organizations like this method because it reduces taxes by minimizing net profit when there is inflation. This method also could help organizations in maximizing their cash flow (Lewis, 2012). Second, the weighted average is a method that working in finding average value of goods at the beginning and end of the financial year and leading to an average cost of closing inventory and cost of sales. This method standardizes the value of goods, taxes, incomes, and cost of sales because of giving average values of all factors, so organizations determines an average cost of their units on hand and applies that average unit cost to the next sale to determine the cost of goods sold (Gapenski, & Pink, 2010) (Gordon, Raedy& Sannella, 2015). The last method is FIFO which is working on the company sells the oldest stock

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