The lower of cost or net realizable value basis of valuing inventories is example of ? A) the cost principle. B) prudence. C) consistency. D) comparability.

Q: When we reduce Total expenses from Revenue , the result is called as ........... a. Cost b. Revenues…

A: Revenues is the total receipts of the business irrespective of the cost incurred. Expenses are the…

Q: Controllability has little to do with whether a cost is fixed or variable.  Select one: True False

A: Fixed cost is the cost that is related to the production of a good or services. It is the amount…

Q: Traditional accounting systems record only actual transac-tions. As a result, how can opportunity…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: EBITDA removes which of the following from the operating income number? a. Significant variable and…

A: Earnings Before Interest, Taxes, Depreciation, and Amortization is referred to as EBITDA. It is a…

Q: The definition of Materiality is: c. accuracy is always the most important consideration regardless…

A: The objective of the question is to identify the correct definition of Materiality in the context of…

Q: The relationship of theory to measurement is very important. Measurement is the assignment of…

A: Arguments for the use of historical cost:1. Objectivity: Historical cost is based on actual…

Q: The Billing rate/Labor costs ratio is a billing multiple and can be used to evaluate relative…

A: The Billing rate/Labor costs ratio, referred to as the billing multiple, is a financial gauge that…

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: he following statements are incorrect, except a. Cost is the same with expense. b. All costs…

A: Cost accounting refer to the outflow of money for the purpose of acquiring assets, producing goods…

Q: 4. (A) Which of the following transactions would cause net income for the period to be understated…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: In your own words explain the meaning of: a. differential revenue, b. differential cost, and c.…

A: In accounting, Differential means the difference between the two alternatives or two output levels,…

Q: On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the…

A: Solution:- Cost-volume-profit graph is the graph which measures the loss, profit and break-even…

Q: Match each of the statements to the correct stem.  1. In a make or buy decision,…

A: Make or buy decision is a decision of cost benefit…

Q: 9. The point where the sales line and the total expense line intersects represents the A. profit…

A: Sales line: Sales line represents the sales incurred by the company over the specific period.…

Q: 6) Explain the difference between an inventoriable (Product) cost and a period cost. What potential…

A: Financial statements are statements which states the business activities performed by the company .…

Q: - Grandpa duct development. an h v that Grandpa Jim's

A: In Resposibility Accounting various segments of a business are…

Q: What is the difference between the methods of calculating cost of goods, periodic vs perpetual?

A: Inventory: Inventory refers to the goods purchased or material purchased and manufactured which is…

Q: Which format of the Income Statement is appropriate for financial reporting? O Variable costing O…

A: The appropriate format for the Income Statement for financial reporting is typically the Absorption…

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.