“Managers should always buy inventory in quantities that result in the lowest purchase cost per unit.” Do you agree? Why?

Q: Why do better decisions regarding the purchasing and managing of goods for sale frequently cause…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: AD, Inc. uses the LIFO-lower of cost or market method to value inventory. If the inventory value is…

A: For financial reporting purposes, will value the inventory in accounting at lower prices or on the…

Q: In an inflationary economy, the use of FIFO maximizes the cost of goods sold and minimizes the cost…

A: In an inflationary economy, the prices of goods keep on rising until the economy slows down. Thus,…

Q: Based on variable costing, what would NUBD Corp. show as the value of its ending inventory?

A: Under variable costing fixed cost is not taken into account. The variables cost like direct…

Q: When inventory unit costs are increasing: Group of answer choices a)FIFO will result in higher…

A: FIFO refers to the method of inventory costing where items purchased first are sold first.

Q: Which one of the following is a reason for the just-in-time inventory policy? Select one: O A. The…

A: Just in time inventory policy is a policy of inventory management the main purpose of which is to…

Q: Like many technology companies, TechnoTools operates in an environment of decliningprices. Its…

A: The last in, first-out (LIFO) is a system utilized to store reports of the latest items first…

Q: Please answer in detail and tell me why other options are incorrect........   The most useful…

A: Following methods are used to find the valuation of the ending inventory 1) FIFO - First in first…

Q: Which of the following is an advantage of the periodic inventory system?A. frequent physical…

A: When a physical inventory count is performed, a periodic inventory system just updates the ending…

Q: In times of decreasing prices, LIFO will result in ____ costs of goods sold and _____ ending…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: Which one of the following is not a disadvantage of the specific identification method of inventory…

A: Under specific identification methods of inventory, specific inventory movement is measured. So it…

Q: Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

A: GIVEN    Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

Q: By having different inventory methods that result in different costs of goods sold and gross profit,…

A: Inventory refers to the stock of work-in-process, raw material & finished goods in the company.…

Q: Which of the following is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Lean businesses aim to: Reduce inventory levels--true

Q: When purchase prices are rising, which of the following statements is true? a.LIFO produces a…

A: FIFO method means first in first out which means that cost of goods sold valued at older prices and…

Q: Keeping track of inventory and keeping carrying costs down.  How do you think those issues would…

A: If business organized their inventory management system, the warehousing cost tends to be reduced…

Q: Explain inventory turnover? Can this be too high ever

A: Inventory turnover ratio means the time old inventory is replaced with new inventory with in a year.…

Q: Can an inventory turnover be too high?

A: The inventory turnover ratio is nothing but the number of times an entity is replacing the goods. It…

Q: Which inventory method will result in lower net income in a period of rising prices? Which inventory…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

A:

Q: Which of the following is the advantage of using weighted average inventory valuation? When prices…

A: Under FIFO, beginning purchases constitutes the cost of goods sold and ending purchases are the…

Q: Ward Hardware does not expect costs to change dramatically and wants to use an inventory costing…

A: Perpetual Inventory System is an accounting system of valuing the inventory where there is a need…

Q: 11. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order…

A: Since you have asked multiple questions, we will answer the first question for you. Kindly repost…

Q: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: Which of the following is NOT an assumption of cost-volume-profit analysis?   Question 10…

A: The question is based on the concept of Cost Accounting.

Q: During periods of rising costs, which inventory costing method produces the highest gross profit?

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment is a simple ratio of the gain from an investment relative to the amount…

Q: What is true in explaining ABC analysis? This process divides items into three classes according to…

A: Hi, since there are multiple questions posted, as per our guidelines we will answer the first…

Q: When inventory costs rise and inventory quantities are not decreasing, what does the LIFO produces?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Typically, the impact of the LIFO reserve is to decrease cost of goods sold and decrease ending…

A: LIFO method last in first out so LIFO method take last cost of product into account so do not older…

Q: The managers of a profit-seeking organisation would always hope that the net realisable value of…

A: Profit seeking organisations are those organisations which run business and invest their capital for…

Q: Which one of the following is a reason for the just- in-time inventory policy? Select one: A. The…

A: Just in time inventory policy means purchasing the inventory when ever required and not maintaining…

Q: Which of the following statements about the margin of safety is (are) correct? a. producing units…

A: Margin of safety is difference between actual sales and break even sales. Sales of more units…

Q: In order to get the lowest profits possible in periods of rising inventory costs, the company should…

A: Inventory costing is an accounting concept that has direct consequence on company’s gross profit and…

Q: 2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that…

A: An inventory valuation allows a business to assign a monetary value to items in its inventory.…