Th e Industry and Business Risk excerpt states that, “Increased competition may lead tolower unit sales and excess production capacity and excess inventory. Th is may result in afurther downward price pressure.” Th e downward price pressure could lead to inventorythat is valued above current market prices or net realizable value. Any write-downs ofinventory are least likely to have a significant eff ect on the inventory valued using:A. weighted average cost.B. first-in, first-out (FIFO).C. last-in, first-out (LIFO).

Q: Identify the incorrect statement below; Group of answer choices “Too much inventory can lead to…

A: Current assets are those assets which are to be utilised for the purpose of business in day to day…

Q: Contrast the effects that LIFO vs. FIFO would have on ending inventory, net income and cash flow in…

A: Under LIFO(Last in first out) method: Inventory is valued at using the costs incurred for the…

Q: Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: In an inflationary environment: Multiple Choice a company's net income will be the same regardless…

A: LIFO and FIFO are two inventory valuation methods. FIFO means first in first out method which says…

Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: Production to stock is justified when the plant has excess production capacity. Inventory production…

A: Production to stock : Production to stock means producing required stock to consumers and providing…

Q: Which of the following is not a reason for stockpiling? Lūtfen birini seçin: a. Minimize holding…

A: Stock piling refers to the process of keeping inventory in bulk. It is an attempt to produce at…

Q: Why is the level of and movement in the operating expense percentage an important indicator of…

A: Operating expenses are the expenses required for the operation of the business.

Q: Arruza Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO…

A: a. b. c. d.

Q: . Which of the following costs will tend to increase if a firm switches to a restrictive short-term…

A: Answer: The correct option would be option C (I, III, and IV only). Introduction: Restrictive policy…

Q: ending inventory increases therefore net income under AC and VC will be same Select one: True False

A: The income statement can be prepared using various approaches as contribution margin or absorption…

Q: Relative valuation has several disadvantages. Which of the following is NOT?   a. There is the…

A: In the context of the given question, we are required to find out the correct option from the…

Q: If one firm is growing rapidly and another is not, how might this distort a comparisonof their…

A: It is a financial measure that is used to evaluate as to how many times a company sells or uses its…

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 improvement in earnings growth can be achieved at the expense of market share (i.e., an…

A: Answer: Usually, earnings growth rate is nothing but a percentage increase in EPS of a company over…

Q: In a period of rising prices, FIFO will result in O lower net income than LIFO. lower net purchases…

A: Inventory valuation is the process by which the inventory of the entity is valued. It can be done…

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

A: Return on investment measures the net earned on the assets employed by the business.

Q: Which of the following is true? O If a firm's volume of credit sales decreases, then its liquidity…

A: Following is the correct option.

Q: During a period of rising inventory costs and stable output prices, describe how net income and…

A: First in first out Method (FIFO) First in first out method is one of the popular method which was…

Q: Which of the following would increase risk?   a. Raise the level of working capital b. Increase the…

A: The working capital is the funds it needs to carry out day-to-day operations like cash, accounts…

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: Explain how LIFO, FIFO, and Weighted average inventory systems will have different affects on a…

A: FIFO (First in first out) method makes the assumption that inventory items that are purchased first…

Q: “Managers should always buy inventory in quantities that result in the lowest purchase cost per…

A: Inventory:  Inventory refers to the raw materials, work-in process, and the finished goods products…

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: If costs are rising, which of the following will be true?a. The cost of goods sold will be greater…

A:

Q: In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio…

A: The financial ratios refer to the ratios that are calculated using the financial data from the…

Q: Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?…

A: If the the earnings are negetive, then value would also be negetive, which is not possible.  If…

Q: A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an…

A: Please find the answer to the above question below:

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: 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: Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B.…

A: Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…

Q: View Policies Current Attempt in Progress Very high turnovers O are always the goal of management.…

A: Turnover ratios are the efficiency ratios which helps in determining the effect of balance sheet…

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: How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation? a)Deferring tax…

A: LIFO - Last in First Out method of inventory valuation is based on the concept that the newest…

Q: Compared to a company that uses the FIFO method, during periods of rising prices acompany that uses…

A: First in First out method states that the inventory units purchased first or earlier are sold first…

Q: .When applying the lower of cost or net realizable value (LCNRV) method, inventory value reported…

A: As per the lower of cost or net realizable value (LCNRV) method, inventory should be recognized at…

Q: A firm that uses LIFO accounting for inventory in times of rising investory costs will always report…

A: FIFO First in first out method is a method of inventory accounting wherein the units of goods…

Q: When applying lower of cost or net realizable value under the FIFO, average cost, or specific…

A: The lower of cost or net realizable value method says we should record the inventory at market price…

Q: the economic order quantity model the return on capital that is forgotten when it is invested in…

A: In EOQ model that is economic order quantity we consider the lot  for which there will be overall…

Q: In the case of decrease the operating cash cycle, which one of the following actions should be…

A: cash flow from operating activities include normal operating of firm.

Q: c. Which of the following correctly identifies a risk facing SSC that might adversely affect sales…

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

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.