Why are inventories valued at the lower-of-cost-or-netrealizable value (LCNRV)? What are the argumentsagainst the use of the LCNRV method of valuing inventories?

Q: How is the cost of ending inventory determined when pools are used?

A: A LIFO inventory pool is a method under which the individual units having same physical similarities…

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: concisely explain how the excess investment cost over book value is allocated.

A: The excess cost of investment over book value can be allocated through the process of amortization…

Q: hoose the letter of answer  Inventories are usually written down to net realizable value a. Item…

A: Inventory is valued at lower of cost or net realisable value. Net realisable value is computed by…

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: 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: What happen when the inventories increasing or deacresing

A: Inventories form a part of assets of the entity and comprises of stock of raw material, work in…

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: Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: What is the profession’s recommendation in regard to the use of the term “surplus”? Explain.

A: The professionals has recommended that use of term surplus should be discontinued in balance sheet…

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 effect do minor deviations from the EOQ have on totalinventory cost?

A: Minor variations from the EOQ will not in general highly affect the total inventory cost except if…

Q: Explain how the lower of cost and net realizable value rule is applied to purchase commitments.

A: Purchase Commitments: It refers to the commitments or contract made by a company with its suppliers…

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: When are the original cost and current book value are relevant?

A: Orginal cost is the cost paid to acquire the assets  Whereas the current book value is the value of…

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: The lower of cost or net realizable value basis of valuing inventories is example of ? A) the cost…

A: Principles of conservation is one of basic principles of valuing in accounting of inventory.

Q: Describe why base measurement on historical costs?

A: Definition: Historical cost: Historical cost explains that assets and liabilities appear in 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 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: Why is it difficult to assign a dollar figure to an intangible cost? Can it ever be done? Explain…

A:

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: 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: Why base measurement on historical costs?

A: Historical cost:   Historical cost explains that assets and liabilities appear in the financial…

Q: Explain realizable value less than cost or cost greater than net realizable value?

A: Introduction:- The following formula used to calculate net realizable value as follows under:- Net…

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: Differentiate between Appraised value and Assessed value?

A: Difference between appraised value and Assessed value:Appraisal value refers to that on a specific…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

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: Weighted average method

A: Correct answer :- A :- Weighted average method.

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: Which of the following is NOT considered in cost-volume-profit analysis?

A: Answer: opportunity costs.

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 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: 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: AF’s inventories are valued at the lower of cost or net realizable value. Does thisapproach differ…

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: Why is the original cost estimate corrected based on buyout data?

A: Buyout process :              When a company acquires the controlling interest in another company,…

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: 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 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…