Which of the following methods of inventory control will be used in case of a business whose inventory consists of a relatively small number of unique, high-cost items? Select one: a. FIFO b. Specific identification c. Average d. LIFO

Q: Which of the following is not an advantage of a perpetual inventory system? a. Assists in the…

A: The perpetual inventory method is a much better method in comparison to the periodic inventory…

Q: hich of the following statements relative to book (perpetual) inventory systems Is false? a. Use of…

A: Answer: Book inventory systems is defined as the inventory system which records inventory based on…

Q: A major advantage of the retail inventory method is that it hides costs from competitors and…

A: Inventory is the current asset (goods or stock) which is held for the business for sale purpose.…

Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: The inventory management system mechanism involves the efficient management of the storage of goods…

Q: Which one of the following statements is true regarding the cost of sales, if the perpetual…

A: The perpetual inventory system is the company where the company counts and records the inventory on…

Q: Which of the following statement about the inventory write-down is not correct? * If the cost is…

A: As per International Accounting Standards IAS 2- “ Inventory includes assets that are held for the…

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: Which of the following statements is incorrect? Group of answer choices A)Ending inventory exceeds…

A: a) Cost of goods sold= Opening inventory + Purchases - Ending inventory Lets take a example…

Q: Which of the following is not an advantage of a perpetual inventory system? a. assits in the…

A: Under the perpetual inventory system, transaction related to the inventory is updated immediately as…

Q: 1.What are the three primary inventory cost flow assumptions? 2. How is cost of goods sold…

A: Since you have posted multiple questions, we will do the first one for you. To get the other…

Q: Which of the following statements is incorrect?

A: Cost of Goods Sold: Cost of Goods sold is the Cost of the items that are sold it is calculated for…

Q: The cost of purchase of inventory does not include: A. Freight handling and other cost directly…

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

Q: Which of the following methods of inventory control will be used in case of a business whose…

A: Tracking down of every single item of inventory individually from the time it enters in production…

Q: Discuss three main reasons for holding inventories. (6 marks) 2-Discuss why Organizations seek to…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which of the following is not utilized by lenders to control inventory that is being used in…

A: Trust receipts are not utilised by lenders.

Q: Which of the following statements is incorrect? Select one: a. By using the IFRS, goods shipped on…

A: Option C is correct.

Q: Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished…

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

Q: Which of the following methods is appropriate for a business whose inventory consists of a…

A: Inventory valuation methods are different methods used to allocate the value to the inventory. They…

Q: 1. Inventory management is the formulation and administration of plans and policies to efficiently…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Which of the following methods is appropriate for a business whose inventory consists of a…

A: Note: Since we are entitled to answer only one question, we’ll answer the first question. Please…

Q: Which of the following may be an indication of inventory theft? COGS is significantly different…

A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…

Q: Which statements below are true? 1. LCM and LCNRV may be applied by individual products, by…

A:

Q: Which of the following is not a reason for the physical inventory count to differ from what…

A: Inventory is one of the important current asset of the business. This can be in form of raw…

Q: Interpretation of the inventory holding period depends on the industry in which a business operates.…

A: More the inventory holding more the carrying and holding cost, hence business should encircle that…

Q: Which of the following statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

Q: B-Marts' large proportion of merchandise held on consignment from suppliers. Which account balance…

A: Audit is the process of checking and verifying books of account of the business in order to ensure…

Q: Which of the following statements about the valuation of the inventory is correct, according to PAS…

A: Philippine Accounting Standards (PAS) 2 Inventories guides how to record or value inventories in the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Journal entries for recording revenue and costs for service provider. For a traditional…

A: Prepare journal entries for the service companies:

Q: You may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below:…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: A business uses a perpetual inventory system. During periods of rising prices, cost of goods sold…

A: In FIFO the earliest  goods ( beginning) will be sold first.

Q: Provide the name of a business and example inventory for that business. List one or more examples of…

A: Introduction For every business, inventory or stock plays a key role. Stock may be in the form of…

Q: The following are several items that Golosow Company's controller has questioned regarding their…

A: Inventory refers to the goods that are remaining unsold at the end of the accounting period. To…

Q: You have been asked by the financial vice president to develop a short presentation on the LCNRV…

A: a. As per GAAP, the inventory is to be valued at the lower of its cost i.e. the laid down cost or…

Q: In a period of falling prices, the use of which inventory cost flow method would typically result in…

A: The inventory valuation is done at the end of the accounting period. Different techniques are…

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.