he cost of inventory owned by a company is considered a:   none of the costs noted, opportunity costs only, or sunk costs only

Q: which of the following will not be deducted to compute the consolidated cost of goods sold? A.…

A: Consolidated financial statements means financial statements of overall group where company have one…

Q: Inventory costing method that treats all mfg cost, direct and indirect, FC or VC, as inventoriable…

A: The treatment relating to direct and indirect costs varies for different costing methods.

Q: Explain two reasons why uncontrollable costs are included in the income statement

A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…

Q: Indirect production costs such as factory rent and depreciation of factory equipment form part of…

A: Cost of inventory consist of: Direct material  Direct labor Overhead cost   Overhead cost includes:…

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: To hold back unrealized profit in ending inventory, cost of goods sold is decreased. True or False?

A: Unrealized profits in the literal sense means those profits that are not realized yet. Unrealized…

Q: Question 3 What is the difference between the way product and period costs are accounted for? O…

A:

Q: In what ways would a reduction in inventory help the company

A: Inventory refers to all the items, goods, merchandise, and materials held by a business for selling…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: Which of the following is not permitted as a cost of inventory?

A: Which of the following is not permitted as a cost of inventory? Answer - b) Storage costs

Q: 1-Which of the following will be classified under inventory? a. Raw Materials b. All the above c.…

A: Gross profit margin = [(REVENUE - COGS) /REVENUE] *100

Q: The work-in-process inventory account, which appears on the balance sheet, represents a cost: A.…

A: Answer  The work-in-process inventory account, which appears on the balance sheet on assets side…

Q: Which one of the following is not a disadvantage of the specific identification method of inventory…

A: Under specific identification methods of inventory, specific inventory movement is measured. So it…

Q: In lean accounting, which of the following is considered a combined account? a. Indirect Labor b.…

A: The term Lean accounting describes the financial reporting practices used by a company that embraces…

Q: Why would a company choose to use an inventory costing method that estimates the cost of the goods…

A: In this question, we  explain that why would a company choose to use an inventory costing method…

Q: The First- In- First- Out method, which is mainly utilized to assign the average cost of production…

A: First in first out (FIFO) is one of the method of inventory valuation, under which inventories which…

Q: Which of the following is true regarding LIFO and FIFO? A) In a period of decreasing costs, LIFO…

A: First in first out is also written as FIFO and last in first out is also written as LIFO. These are…

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: TRUE OR FALSE Generally accepted accounting principles (GAAP) requires that absorption costing be…

A: Under absorption costing, the fixed costs are included on the basis of number of units sold. Under…

Q: The cost of inventory owned by a company is considered a : opportunity cost, sunk cost, or economic…

A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

Q: For a company like Best Buy, what does the balance of Cost of Goods Sold in the income statement…

A:

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…

Q: Period costs are O Always considered part of inventory Always recorded as an expense O Expensed only…

A: Cost refers to the amount which is incurred on the making of the goods and to run the daily business…

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: hich of the following would not be considered as a component of the "cost" of stock? a. Salaries of…

A: Inventoriable cost means the cost incurred to manufacture the product and included in inventory.…

Q: How does the inventory method chosen can have a significant effect on the amount of income reported…

A: Inventory is an important asset for the business. And its accounting has two methods of inventory…

Q: the lower cost or market is a method of inventory valuation true or false?

A: Inventory valuation is the accounting process in which the monetary value assigned to the unsold…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Explain what is meant by the cost rule or net realizable value, whichever is less, and how it is…

A: As per IAS -02 inventory should be measured on cost or Net realizable value whichever is lower.…

Q: Explain briefly the application of the LCM rule to ending inventory. Describe its effect on the…

A:

Q: In the statement of financial position prepared by the company, the inventory of the branch shall be…

A: Inventory is part of current assets on the statement of financial position. The conservatism…

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.