Q.4Compare and contrast the different approaches for inventory system. How will you record under different approaches (support your answer with the help of journal entries? Tabulate the factors which contribute towards selection of these approaches.

Q: Explain the LIFO retail inventory method.

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: Define inventory.

A: Inventory: Inventory consist of total of three components: raw material, work-in-process and…

Q: An audit trail allows you to trace a source document to its final effect on the financial statements…

A: Audit trails are manual or electronic records that are chronologically defined events to provide…

Q: How do you find the ending inventory?

A: Many companies earn revenue by selling inventory rather than a service. These companies are…

Q: Defining Chapter Terms Terms and phrases relating to concepts discussed in this chapter along with…

A: Key Inventory terms and phrases Description of terms and phrases 1. Net realizable value h.…

Q: Make a comparison between periodic and perpetual inventory systems and explain under which…

A: Answer: As per Q/A guidelines first question has been answered. Please repost remaining question.…

Q: Which options do you select on the Requisition Preferences page? (Choose two) Favorite charge…

A: Supply Chain Management (SCM) refers to the planning, coordination, and control of the entire…

Q: s) Which of the following is NOT a benefit of the Specific Identification method of tracking…

A: The specific identification method represents that the inventory is valued and tracked on an…

Q: Explain Inventory Estimation Techniques.

A: Inventory Estimation Techniques:

Q: Describe some inventory control systems that are used in practice

A: Inventory control system: The inventory control system can be defined as the use of a computerized…

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.