Which of these would NOT contribute to a retailer's use of forward buy?O A. Low holding costsO B. Lower expected future prices from the manufacturerOC. Slow advances in product developmentO D. Long product shelf lifeO E. Volume discounts from the manufacturer

Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…

Answered: Which of these would NOT contribute to…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 5MC: In the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest...

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What is inventory shrinkage? The difference between product cost and retail selling price. The loss of sales revenue due to lowering sales prices. The discrepancy between the perpetual system generated Inventory level and actual physical inventory on hand. The inaccuracy of vendor invoices regarding what was physically shipped. What would be the most favorable cost flow assumption method when calculating gross margin in a time of high inflation? FIFO Specific LIFO Average
Th e Industry and Business Risk excerpt states that, “Increased competition may lead tolower unit sales and excess production capacity and excess inventory. Th is may result in afurther downward price pressure.” Th e downward price pressure could lead to inventorythat is valued above current market prices or net realizable value. Any write-downs ofinventory are least likely to have a significant eff ect on the inventory valued using:A. weighted average cost.B. first-in, first-out (FIFO).C. last-in, first-out (LIFO).
Which of the following choices correctly denotes factors that can influence a company's pricing practices for goods and services? Market Customer Conditions Costs Demand A. No Yes Yes B. No Yes No C. Yes Yes Yes D. Yes Yes No E. Yes No Yes Select one: a. Choice A b. Choice B C. Choice C Choice D Choice E d. e.
In the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest sales price. (c) replacement cost. (d) average sales price.
Choose
Which of the following performance measures will increase if inventory decreases and all else remains the same? Return on Residual Investment Income A) B) Yes Yes No Yes Yes No D) No No Multiple Choice Choice C Choice D Choice A
2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. B. Which inventory method would best meet Shepherd's goal? Enter answer here. C. What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need? Enter answer here.
Which of the following performance measures will increase if inventory decreases and all else remains the same? Return on Investment Residual Income A) Yes Yes B) No Yes C) Yes No D) No No Multiple Choice Choice A Choice B Choice C Choice D
Assuming rising inventory prices, which statement is correct? Group of answer choices A. FIFO reports a lower value for cost of sales than other methods B. FIFO reports a lower value for closing inventory than other methods C. Using FIFO, it is not possible to calculate whether cost of sales/inventory is lower or higher than it would be if other assumptions about inventory valuation were made D. FIFO reports a lower profit than other methods
What is customer value? Choose the correct. A. Ratio between the customer's perceived benefits and the resources used to obtained these benefits. B. Excess of satisfaction over expectation. C. Post purchase dissonance D. None of the above.
Which of the following change in regulations is most likely to improve internal market efficiency and thereby overall market efficiency? Reducing margin requirements on short selling. Raising margin requirements on short selling. Raising margin requirements on margin purchases. Reducing trading hours. Increasing margin interest rates.
Which of the following would not be considered a resource cost of inflation? a. Additional trips to the bank b. Comparison shopping c. Reprinting menus d. Reprinting price tags e. Buyers pay more for what they buy

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Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B. Lower expected future prices from the manufacturer OC. Slow advances in product development O D. Long product shelf life O E. Volume discounts from the manufacturer