What is true in explaining ABC analysis? This process divides items into three classes according to their inventory level Class A items normally have the least dollar usages Class B and class C account for most of inventory items but not dollar usages  Class C accounts for the largest dollar usage of any class   Which one of the following is a reason to have small inventories? To improve customer service To reduce ordering costs To reduce equipment setup costs To reduce interest expense or opportunity costs

Q: All the following are true for absorption costing, except O is used for GAAP reporting purposes. O…

A: Hi studentSince there are multiple questions, we will answer only first question.Absorption costing…

Q: Proponents of the LIFO Inventory cost flow assumption argue that this costing method is superior to…

A: LIFO is one of the inventory methods used to account for inventory. Here the inventory of the…

Q: The Norfolk School of Commerce (NSC) operates a Career Counseling Center (CCC) to advise students…

A: Under costing two methods used for cost allocation. One is traditional costing other one is activity…

Q: The Quick Ratio is often use in conjuction with the current ratio because A It is easier to…

A: In finance we use different financial ratios to determine the financial health and position of a…

Q: Which one of the following inventories may not be valued for balance sheet purposes at the…

A: Inventory is valued only at lower of Cost or Net realizable value(which is the selling price minus…

Q: lowing information for Whispering Winds Corp.. Whispering Wi unting for its inventory transactions.…

A: FIFO Method : Date   Purchase     Cost of good sold     Inventory         Unit Unit cost Total…

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 a period of rising costs, which inventory valuation method would a company likely choose if they…

A: The objective of the question is to identify the inventory valuation method that would result in the…

Q: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…

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

Q: There are numerous inventory costing methods including FIFO, LIFO, and Weighted Average methods.…

A: Ans. There are 3 methods to value inventory and these are FIFO, LIFO and weighted average. Different…

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: Which of the following is true regarding LIFO and FIFO? A) In a period of decreasing costs, LIFO…

A: First in first out is also written as FIFO and last in first out is also written as LIFO. These are…

Q: Appliance Apps has the following costs associated with its production and sale of devices that allow…

A: The financial statement is the most important document for any organization. It comprises three main…

Q: Using the given data…find the answers for Formulas 1-10.  Sales  Variable manufacturing cost Fixed…

A: Sales = Selling price per unit * number of sold units = 30*80000 = $24,00,000 Variable manufacturing…

Q: Keeping track of inventory and keeping carrying costs down.  How do you think those issues would…

A: If business organized their inventory management system, the warehousing cost tends to be reduced…

Q: A merchandising business purchases goods for resale. A merchandiser makes a profit by selling goods…

A: Under the FIFO method, the cost of goods sold contains the cost of the earliest purchases. Under the…

Q: What is inventory shrinkage? The difference between product cost and retail selling price. The…

A: Inventory shrinkage refers to the discrepancy between the perpetual system generated Inventory level…

Q: The specific identification inventory costing method: Select one: a. Is more appropriate for a firm…

A: The question is based on the concept of Cost Accounting.

Q: Ward Hardware does not expect costs to change dramatically and wants to use an inventory costing…

A: Perpetual Inventory System is an accounting system of valuing the inventory where there is a need…

Q: Discuss the two (2) components of every Sales dollar, and defend the choice of a business to utilize…

A: Last in first out (LIFO) is the method of the valuation of the inventory, the most recent and last…

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.