Please answer in detail and tell me why other options are incorrect........   The most useful inventory costing method which enables purchase price variance analysis is: A average costing, B standard costing. C last in, first out (LIFO) costing. D first in, first out (FIFO) costing

Q: Inventory carrying costs: include the costs of generating memos, fax transmissions, etc. associated…

A: Inventory carrying cost is the total of all expenses related to storing goods which are not sold…

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: . Discuss why the details of material, labor and overhead are important factors used in this…

A: A standard cost system is a system that helps a business measure performance and value inventory.

Q: Based on the following data, make a comparison between the use of the flow of inventory costs…

A: FIFO:  Under this method, the inventory that is bought first is to be sold first. Thus the ending…

Q: Which of the three methods of inventory costing -FIFO, LIFO, or weighted average cost - will in…

A: FIFO - Inventory purchased first is assumed to be sold first. LIFO - Inventory recently purchased is…

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: cost ratio, the conservative/conventional retail method should A. Exclude mark-up but not markdown…

A: The conservative/conventional retail method  estimates the  lower of cost (average) or market value…

Q: Which of the following companies would be more likely to use the specific identification inventory…

A:

Q: Why does Target feel that the retail inventory method will result in inventory beingvalued at the…

A: LCM (Lower of Cost or Market) approach:   It is an approach that values the inventory at historical…

Q: If the beginning finished goods inventory (in units) is more than the desired finished goods ending…

A: Total production required is calculated as sum of forecasted unit sales and planned finished goods…

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: Give examples of costs included in annual carrying costs of inventory when using the EOQ decision…

A:

Q: Which of the following might be attributed to efficient inventory management? Select the correct…

A: All of the choices given

Q: The weighted average inventory cost flow method is the least used of the inventory costing methods.…

A: When the inventory is valued at by calculating the weighted average rate per unit for the purchase…

Q: If costs are declining, will the LIFO or FIFO method of inventory valuation yield the lower cost of…

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

Q: An advantage of the weighted average inventory method is that it smooths out erratic changes in…

A: Inventory accounting is the branch of accounting concerned with the valuation and accounting for…

Q: Explain the lower of cost and net realizable value approach to valuing inventory.

A: Merchnadise Inventory: It refers to the current assets that a company expects to sell during the…

Q: Briefly explain the usefulness of the inventory figure resulting from the application of lower of…

A: Net Realizable Value(NRV) refers to the inventory value which a business entity can realize from…

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: Explain the (a) lower of cost or net realizable value (LCNRV) approach and the (b) lower of cost or…

A: LCNRV (Lower of Cost or Net Realizable Value) approach:   It is an approach that compares the cost…

Q: There are numerous inventory costing methods including FIFO, LIFO, and Weighted Average methods.…

A: Ans. There are 3 methods to value inventory and these are FIFO, LIFO and weighted average. Different…

Q: The cost method that will yield an ending inventory value that is somewhere between possible high…

A: Inventory valuation has 4 Methods - 1. FIFO 2. LIFO 3. Weighted Average 4. Specific Identification…

Q: When inventory items are highly specialized, the best inventory costing method is ________.A.…

A: Inventory is one of the important current asset for the business. Management and valuation of…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

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: View Policies Current Attempt in Progress Which costing method cannot be used to determine the cost…

A: As per accounting standard, cost of inventory should be calculated as lower of cost or net…

Q: Based on the following data, make a comparison between the use of the flow of inventory costs…

A: Given, sales = $200000 Selling per unit = $5 per unit Total number of units sold = Sales / selling…

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: Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of…

A: Inventory means the stock of goods in hand . Goods means the thing in which the business deals and…

Q: Select one: A. Economic Order Quantity (EOQ) B. Safety stock C. Order point D. None of the a

A: Ordering cost is cost incurred when an order is created and processed. Carrying cost is the cost of…

Q: Which of the three methods of inventory costing— FIFO, LIFO, or weighted average cost—will in…

A: First-In-First-out (FIFO): FIFO is a method used for recording inventory sold. In this method the…

Q: Which of the following statements is false?   a. The price factor refers to the change in selling…

A: Gross profit variance measures the ability of a business to generate a profit from its sales and…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…

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: Determine the value of the inventory at the lower of cost or market by applying lower of cost or…

A:

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: Using the FIFO method: If, for any period, the beginning Finished Goods Inventory is zero, then the…

A: As per our protocol and guidelines we provide solution to the one question only or up to first three…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.