The selected inventory costing method impacts: Multiple Choice Gross profit and net income. Sales. The physical flow of goods. The quantity of inventory items on hand. The shipping terms to the buyer.

The selected inventory costing method impacts: Multiple Choice Gross profit and net income. Sales. The physical flow of goods. The quantity of inventory items on hand. The shipping terms to the buyer.

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Description: The selected inventory costing method impacts:Multiple ChoiceGross profit and net income.Sales.The physical flow of goods.The quantity of inventory items on hand.The shipping terms to the buyer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

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The selected inventory costing method impacts:
Multiple Choice
Gross profit and net income.
Sales.
The physical flow of goods.
The quantity of inventory items on hand.
The shipping terms to the buyer.

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Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.
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