Pkg Acc Infor Systems MS VISIO CD
10th Edition
ISBN: 9781133935940
Author: Ulric J. Gelinas
Publisher: CENGAGE L
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Chapter 15, Problem 11DQ
Summary Introduction
To determine: The impact of eliminating LIFO on manufacturing operations.
Introduction:
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What is the dollar-value method of LIFO inventory valuation?What advantage does the dollar-value methodhave over the specific goods approach of LIFO inventoryvaluation? Why will the traditional LIFO inventory costingmethod and the dollar-value LIFO inventory costingmethod produce different inventory valuations if thecomposition of the inventory base changes?
Many financial analysts substitute one amount for another in making ratioanalysis comparisons in order to better achieve intercompany or companyto-industry data comparability. Which of the substitutions described herewould not achieve better data comparability (for the ratio indicated) underany situation?a. Cost of goods sold for sales—in the numerator of the inventory turnoverratio.b. Cost of plant and equipment for net book value—in the numerator of theplant and equipment turnover ratio.c. Expected future earnings per share for current earnings per share—in thedenominator of the price/earnings ratio.d. Average net assets for average total assets—in the denominator of the returnon investment ratio.
Why is reduce inventory cost is an advantage of inventory outsourcing?
Chapter 15 Solutions
Pkg Acc Infor Systems MS VISIO CD
Ch. 15 - Prob. 1RQCh. 15 - Explain the three key drivers of complexity in...Ch. 15 - Describe the three key characteristics of...Ch. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQ
Ch. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - a. How are a bill of materials (BOM) and a routing...Ch. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 16RQCh. 15 - Prob. 17RQCh. 15 - Prob. 18RQCh. 15 - Why is inventory management and control important...Ch. 15 - Prob. 21RQCh. 15 - Prob. 1DQCh. 15 - What industry do you believe is a leader in...Ch. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - In addition to the industries mentioned in...Ch. 15 - A main goal of JIT is zero inventories. a. Assume...Ch. 15 - Prob. 9DQCh. 15 - Discuss how the inventory process supports the...Ch. 15 - Prob. 11DQCh. 15 - Prob. 1SPCh. 15 - Prob. 2SPCh. 15 - Prob. 3SPCh. 15 - Prob. 4SPCh. 15 - Prob. 5SPCh. 15 - Study Figure 15.8, showing the level 0 DFD of the...Ch. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - Prob. 5PCh. 15 - Prob. 6PCh. 15 - Prob. 7P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Why are perpetual inventory systems more expensive to operate than periodic inventory systems? What conditions justify the additional cost of a perpetual inventory system?arrow_forwardOne reason for inventory is to prevent shutdowns. How does the JIT approach to inventory management deal with this potential problem?arrow_forwardWhich of the following is a disadvantage of the perpetual inventory system? A. Inventory information is in real-time. B. Inventory is automatically updated. C. It allows managers to make current decisions about purchases, stock, and sales. D. It is cost-prohibitive.arrow_forward
- I am intrigued by the LIFO inventory valaution method. It seems irrational for all insrtnaces except maybe a coal pile. Why is it adopted?arrow_forwardWhy do consignment arrangements present a challenge in inventory management? Explain.arrow_forwardWhat inventory costing methods are allowed under IFRS? How does this differ from the treatment under U.S. GAAP?arrow_forward
- Which one of the following is not a disadvantage of the specific identification method of inventory costing? a. It allows manipulation of profits b. It does not match expenses against revenues c. It is too expensive to use in complex manufacuring situations d. It is only practical where units are costly and easily distinguishablearrow_forwardWhich one of the following sets of inventory cost flow assumptions is not susceptible to profit manipulation by management? a. FIFO and specific identification b. LIFO and average cost c. FIFO and average cost d. LIFO and specific identificationarrow_forwardDuring a period of rising inventory costs and stable output prices, describe how net income and total assets would differ depending upon whether LIFO or FIFO is applied. Explain how your answer would change if the company is experiencing declining inventory costs and stable output prices.arrow_forward
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