What are the four types of inventories and their differences?

Q: Distinguish between costs included in inventories and costs recognized as expenses in theperiod in…

A: Product cost is the cost incurred for manufacturing a product i.e.; it is the total amount of direct…

Q: What are the three types of manufacturing cost?

A: Manufacturing cost: Manufacturing cost is the sum total of various costs used or incurred in the…

Q: What are three goals of inventory management?

A: Inventory management: Inventory management refers to ordering, storing and using the company’s…

Q: What are the three cost classifications of manufacturing?

A: This question tells about the three cost classifications of manufacturing

Q: What are the methods used to determine the cost of goods?

A:

Q: What is the Compound-Amount Factor?

A: Compound amount factors are the factors by which the interest for a loan is calculated which is…

Q: Explain the Problems in Cost Accounting Measurements?

A:

Q: What are the valuing inventories?

A: Cost:   It is the economic value incurred by an organization to manufacture a product or to render a…

Q: . What are the three principle objectives of cost accounting system?

A: Cost accounting system is a system in which all the costs related to manufacturing, selliing the…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: What is separation of duties? Give five examples?

A: Separation of Duties: Management uses various techniques to improve the internal control of the…

Q: What are the different risks associated in the accounting of inventories?

A: Answer: Inventories are the current assets of the company which are realizable within 12 months from…

Q: What are the equivalent units?

A: Equivalent units:           Completed units   150       Ending Inventory   20       Total…

Q: In accordance with IAS 2 Inventories define the terms "inventories" and "net realisable value”.…

A: Inventories as the name states is one the asset to the company or any business which comes under the…

Q: What guidance does the Codification provide concerning reporting inventories above cost?

A: Inventory management: Inventory management is defined as a set of processes clearly determined for…

Q: What is the Equivalent Units of Production?

A: Equivalent unit of production is a term that is used to be applied to the work in progress inventory…

Q: hat does equivalent units of production (EUP) mean, and why is it necessary for it to be correct?

A: Equivalent units of production (EUP) is a managerial accounting computation that estimates the…

Q: What is the role of Finished-goods inventory?

A: Stock is the term used for the products that are ready for sale and raw materials used to create…

Q: Acoording to the information given in the table below, which of the following is Cost of Goods Sold?

A: Cost of goods sold is the production costs incurred on goods sold in a particular accounting period.

Q: What is the primary difference between the two cost accounting, systems regarding the accumation of…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: What are the three differences between carriage inwards and carriage outwards?

A: Carriage inward & carriage outward are the expenses paid by while purchasing or selling the…

Q: Define the term Raw-materials- inventory?

A: Inventory is the materials such as raw materials, finished products, in-process goods that are…

Q: what is the equivalent units of production for materials?  B) what is the equivalent units of…

A:

Q: What are the equivalent units of production?

A: Work-in-Process: It refers to the partially finished goods of a company waiting to be completed.…

Q: What is meant by a unit of comparison? Why is it important?

A: Fixed assets:   These are the types of assets owned by the business that is expected to provide an…

Q: Determine the reorder point. order point units Determine the economic order quantity.

A: We know that, Reorder point = average daily usage*lead time + safety stock So here, reorder point is…

Q: When is it necessary to estimate inventories?

A: Inventories are resources which are held to be sold in the market. Inventories can be in the form of…

Q: Which are the four key costs to consider for each supplier?

A: The four key costs for each supplier are: Material costs Inventory costs Freight costs…

Q: What are three common features of cost accounting

A: Cost Accounting: Cost accounting refers that branch of accounting, which records and analyzes the…

Q: In a half page, What are stock out costs and capacity associated costs? What is their relationship…

A: Stockout Costs: A Cost which will arise on shortage of Inventories during the production,  It will…

Q: What are the three viewpoints of product life cycle? How do they differ?

A: Product life cycle (PLC) is that the cycle through which each product goes through from introduction…

Q: What are the three key features of cost accounting?

A: Cost accounting: It is a process of recording of all the costs incurred in the business in a way…

Q: Explain the different types of inventory.

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

Q: Describe and compare the cost flow assumptions used to account for inventories.

A:

Q: What are the three main uses of quality cost reports?

A: The different cost associated with quality are Prevention cost, appraisal Cost, Internal Failure…

Q: How is the LIFO method used to calculate inventories? Is this permissible according to GAAP?

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

Q: What amount should be reported as cost of goods manufactured?

A: Cost of Goods Manufactured :— It is the total cost incurred during manufacturing of the finished…

Q: What is the basic purpose of inventories? In what five areas do they provide a buffer?

A: The inventory indicates the current assets of the corporation which is directly related to the…

Q: What are the components of total inventory costs?

A: Total Inventory Cost consist three main component.

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.