When is a company justified in inventorying scrap?

Q: is amortization of patent included in statement of costs of goods manufactured?

A: The income earned by a corporation after deducting the direct costs of manufacturing its products is…

Q: What is the concept of material inventory error?

A: Raw materials inventory: Raw material inventories are the primary materials which are used in the…

Q: What are the cost associated with carrying material in stock?

A: Every business needs to manage its inventory in such a way so that inventory in stock should be…

Q: If a decision is made to abandon an area of interest, how should any pre-production costs in respect…

A: The answer for the theory question on the treatment of pre-production costs related to an abandoned…

Q: What Is The Lean Perspective on Inventory?

A: Lean perspective on inventory is an approach which helps the organization to reduce the wastage an…

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: Which cost incurred on equipment does not belong to the group?   Freight on acquisition of…

A: The total cost of acquisition of non cash assets include the acquisition price, freight charges,…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Examine the impact on turnover ratios of various inventory cost flow assumptions and depreciation…

A: It is the sales proportional to inventory, which primarily indicates the outflow of goods about…

Q: How does Just-In-Time (JIT) system help minimize the inventory investment? Explain.

A: Just-In-Time (JIT) is used for that inventory which is owned by business at reduced amount on…

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: Which of the following types of interest cost incurred in connection with the purchase or…

A: The costs incurred to acquire an asset can be capitalised or expensed depending on the nature of…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: Which freight is capitalizable or inventoriable cost by the consignor on the consigned goods under…

A: Answer -  Freight and other handling costs for the shipping of goods under Consignment Sales from…

Q: When an exchange of inventory items between an enterprise and another entity is undertaken to serve…

A: Non-monetary exchange is governed by Accounting for Non-monetary Transactions

Q: What does the asset turnover ratio measure, and how is it calculated?

A: Profitability ratios: In general, financial ratios are used to evaluate capabilities, profitability,…

Q: How does the materials requisition help safeguard a company’s assets?

A:

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: Explain why product costs are capitalized but period costs are expensed in the current accounting…

A: Product Cost The cost of the goods refers to a price paid to manufacture a product. It requires…

Q: Discuss the influence of alternative inventory cost flow assumptions and depreciation methods on…

A: Step 1 Turnover ratios are the sales proportionate to the inventory, mainly which states the outflow…

Q: Which of the following should not be classified as inventory? Land acquired for resale by a real…

A: The term inventory refers to raw material used in production as well as goods produced that are…

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: How can a company track the extent of price discounting on a customer-by-customer basis?

A: Customer Profitability Analysis:Customer profitability analysis is the process of ascertaining the…

Q: 2- Which of the following is a product cost as it relates to inventory? a. Selling costs. b.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Which ratio is calculated to ascertain the efficiency of inventory management? *

A: Inventory Turnover Ratio:-This is the efficiency ratio that measures the efficiency of the company…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: What costs are included in determining the total cost of an asset? Why would a company include more…

A: Asset refers to the resources used by the company in order to run operations effectively and…

Q: What method of inventory valuation should be used for economic decision-making problems?

A: Inventory valuation is necessary for ascertaining the accurate cost of inventory so that accurate…

Q: Why does the accounting profession make a distinction between internally created intangibles and…

A:

Q: How sensitive is the NPV to changes in the quantity sold?

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

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: When is depreciation a product cost? When is depreciation a period cost Please Explain both briefly

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: a company price goods below costs

A:

Q: What is the nature of a sale on consignment?

A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…

Q: ) How could rates of technological change affect a company’s decision about whether to buy or lease…

A: Rate of technology plays a crucial role in the decisions made by companies. If the technology is…

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.