Please answer in detail and tell me why other options are incorrect........   The most useful inventory costing method which enables purchase price variance analysis is: A average costing, B standard costing. C last in, first out (LIFO) costing. D first in, first out (FIFO) costing

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

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: 22.Which inventory costing method has a stabilizing effect on profit, such that during a period of…

A: There are four Methods of issue of material  1.First-in, first-out method 2.  Last-in, first-out…

Q: LCNRV of inventory Select one: a. Is always either the net realizable value or its cost. b. Should…

A: Lower-of-cost-or-net realizable value: The lower-of-cost-or-net realizable value (LCNRV) is a method…

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: When inventory unit costs are increasing: Group of answer choices a)FIFO will result in higher…

A: FIFO refers to the method of inventory costing where items purchased first are sold first.

Q: Gross profit will result if: Choose operating expenses are less than net income naging inven sales…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…

A: Product cost means the cost which are incurred to create a product that is intended for sale to the…

Q: In times of decreasing prices, LIFO will result in ____ costs of goods sold and _____ ending…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: Which of the following statements regarding the lower of cost and net realizable value (LCNRV) rule…

A: The rule of valuing the inventory at cost or net realizable value is also called as Prudence concept…

Q: If costs are declining, will the LIFO or FIFO method of inventory valuation yield the lower cost of…

A: Inventory cost flow assumptions: These are the methods used by the companies to compute the cost…

Q: Write out the formula for the total costs of carrying and ordering inventory, and then use…

A: The formula for the total costs of carrying and ordering inventory and using the formula to derive…

Q: An advantage of the weighted average inventory method is that it smooths out erratic changes in…

A: Inventory accounting is the branch of accounting concerned with the valuation and accounting for…

Q: Briefly explain the usefulness of the inventory figure resulting from the application of lower of…

A: Net Realizable Value(NRV) refers to the inventory value which a business entity can realize from…

Q: 1. Variable costing enables more efficient: * Cost-volume-profit (CVP) analysis. External reporting.…

A: Variable costing is also written as marginal costing. It is developed from the concept marginal cost…

Q: The cost method that will yield an ending inventory value that is somewhere between possible high…

A: Inventory valuation has 4 Methods - 1. FIFO 2. LIFO 3. Weighted Average 4. Specific Identification…

Q: Unit Costs, Inventory Valuation, Variable and Absorption Costing Snyder Company produced 82,600…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: The inventory evaluation method which does not represent the actual ending inventory value is?…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: hen purchase costs regularly rise, the inventory costing method that yields the highest reported net…

A: The inventory can be valued using various methods as LIFO, FIFO, average and specific identification…

Q: Required production during a planning period will depend on the: Multiple Choice cost of beginning…

A: Production is the process of manufacturing a certain product or service using raw materials. In…

Q: Annan’s statement regarding the perpetual and periodic inventory systems is most significant when…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Differentiate inventory valuation under variable costing as against absorption costing.

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: Explain the lower of cost or market rule for inventory valuation and explain why it is GAAP.

A: Lower of cost or market value for inventory valuation is just a mixture of many accounting…

Q: Inventory values calculated using variable costing as opposed to absorption costing will generally…

A: Inventory is referred to as current asset which includes raw materials, work in process inventory…

Q: 17) Target costing sets prices by computing an average cost and then adding a desired markup.

A: Target costing is a method adopted by the management to determine product cost and to use such cost…

Q: What are some inventory ordering costs? As defined here, are thesecosts fixed or variable?

A: Inventory ordering cost can be define as the cost that is incurred by the firm during order…

Q: Based on the fundamental principle of IAS2, identify two (2) circumstances where the NRV of…

A: The NRV of the inventories is estimated in the usual course of the business and costs related to…

Q: Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of…

A: In periods of rising prices, the method that would generally result in the same unit cost for…

Q: 2. Explain the arguments for the use of traditional absorption costing rather   than marginal…

A: 1.  Variance analysis can be summarized as an analysis of the difference between planned and actual…

Q: Which cost flow assumption generally results in the highest reported amount of net income when…

A: FIrst in first out or FIFO cost flow assumption provides highest net income when inventory prices…

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.