The lower of cost or net realizable value basis of valuing inventories is example of ? A) the cost principle. B) prudence. C) consistency. D) comparability.

Q: A limitation of transfer prices based on actual cost is that they   Must be adjusted by some…

A: If the transfer price and the actual cost would be same that represents that the company has not…

Q: Purchase​ discounts, freight in and receiving costs   A. are used when setting a cost standard for…

A: Purchase discounts, freight in, and receiving costs are considered as part of the cost of the…

Q: Lower of cost and net realizable value a. results in the lowest valuation if applied to the total…

A: It is preferable to value the inventory at lower of cost or net realizable value (LCNRV) in…

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: Calculate the order quantity that would minimize the cost of item Z.

A: Economic order quantity (EOQ), is  the optimum amount of an item that should be ordered at any given…

Q: Cost of goods sold and cost of goods manufactured are the same    True False Can be true, can be…

A: SOLUTION- THE COST OF GOODS MANUFACTURED IS COMPOSED OF MATERIAL AND PRODUCTION COSTS , PROCESS…

Q: inventories at the lower of cost and net realizable value? Added to cost

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

Q: Indirect material cost is that which cannot be conveniently identified with and allocated to cost…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Some costs that possibly could be traced directly to cost objects are nonetheless classified as…

A: Indirect costs are those costs which cannot be traced or is not cost effective to trace the costs…

Q: What are some costs associated with high inventories? With lowinventories?

A: Cost associated with inventories are also known as inventory cost. Inventory cost can be classified…

Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…

A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Q: AASB 102 Inventories specifies that the measurement rule for inventories is: higher of initial cost…

A: The given questions are answered as per AASB 102 Inventories {Australian Accounting Standard Board}

Q: Inventory cost is least likely to include:A. production-related storage costs.B. costs incurred as a…

A: Transportation costs incurred to ship inventory to customers are an expense and may not be…

Q: The fundamental EOQ model a. provides for fluctuating lead times during reorder cycles. b. is…

A: EOQ (Economic order quantity): A decision much out the great inventory management. the quantity to…

Q: em. b. the amount of money paid for an item,

A: Opportunity costs are the potential gains that an individual, investor, or corporation foregoes by…

Q: Which of the following is not a common cost flow assumption used in costing inventory? O First-in,…

A: Companies assign costs to products through inventory costing, often known as inventory cost…

Q: Why are inventories valued at the lower-of-cost-or-netrealizable value (LCNRV)? What are the…

A:

Q: g helps in : Measuring effici

A: Standard costing is a perfect system of controlling the costs and measuring efficiency and its…

Q: Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: Differentiate inventory valuation under variable costing as against absorption costing.

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: estion will save this respo I using: cost of good available for cost of goods sold, sales

A: The right answer is option d Gross sales, Sales return &allowances, sales discount

Q: current cost financial statements: a. General price level gains or losses are recognized b. Amounts…

A: Explanation: The financial accountiing term current cost accountiing refers to an approach that…

Q: Calculate the order quantity that would minimize the cost of item

A: Only the first part is solved, since only that is specified to be solved.

Q: For each of the following items, identify which of the managementaccounting guidelines applies:…

A: Planning and Control Decision: Planning decisions involves selecting organization goals, estimating…

Q: elevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with…

A: SOLUTION-1 DIFFERENTIAL COSTS OR RELEVANT COST -THEY ARE THE COST THAT IS AFFECTED BY THE DECISION…

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: Leah Clement believes that the allocation of cost of goods available for sale should be based on the…

A: Cost of Good Sold: Cost of goods sold (COGS) refers to the direct costs of manufacturing the…

Q: The purpose of costing are as follows EXCEPT: a) Value inventory b) Record costs c) Price products…

A: The purpose of costing is. 1. To Formulate cost of a product 2.  To facilitate decision making 3. To…

Q: Direct costs are classified by controllability.    True False Can be true, can be false

A: Direct costs are those costs which are directly incurred for purchase or production of goods in the…

Q: What factors might impact on the management’s selection of an inventory cost flow assumption? In…

A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: What is the total cost of ownership concept? What are some of the challenges that must be overcome…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

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: What is cost per equivalent unit for material using weighted average? What is the cost assigned to…

A: In process costing, some units are not completed and consumed a portion of cost only so the…

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: Which of the following is true of abnormal spoilage? a. It is considered to be part of production.…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

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.