One of the accepted methods of accounting for by-product is to recognize the value of the by-product as it is produced. Under this method, inventory costs for the by-product would be based on *   a. An allocation of some portion of joint costs but not any subsequent costs. b. Neither an allocation of some portion of joint costs nor any subsequent processing costs. c. Subsequent processing costs less an allocation of some portion of joint costs. d. An allocation of some portion of joint costs plus any subsequent costs.

Q: IFRS and GAAP are similar for all of the following inventory accounting standards except IFRS…

A: IFRS allows the inclusion of overhead in inventory. In IFRS the use of LIFO cost flow assumption is…

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: 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 a name for a specific type ofinventory?a. Finished goods. c. Raw…

A:

Q: ethod to use or are there other determinants that are more important in your opinion? Provide…

A: FIFO stands for first in first out. It values the inventory on the basis of first costs. The goods…

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: The procedure selected to calculate the cost of the ending inventory has absolutely no effect on the…

A: Eliminating the incorrect option:The method chosen to calculate the cost of ending inventory does…

Q: when goods are sold their costs are transferred to finished goods inventory. True or False?

A: The inventory accounts are classified as Work in process, finished goods inventory, raw materials.…

Q: A major difference between GAAP and IFRS with respect to accounting for inventories is:…

A: Generally Accepted Accounting Principles or GAAP Are the principles governing the world of…

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: 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: None

A: The statement in the image is true.Under LIFO (Last-In-First-Out), companies assume the most…

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: following is accounted for prospectively? Change in reporting entity. Change in…

A: A change in an estimate is accounted for prospectively.

Q: How should variable overhead costs incurred to self-construct an asset be reca They should be…

A: Introduction:- Self-constructed assets refer to a company builds under its own management. The cost…

Q: Which of the following would be relevant in the decision to sell or throw out obsolete inventory?…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is…

A: Weighted Average Cost refers to a financial calculation used to determine the average cost of a…

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.