Which one of the following is not a disadvantage of the specific identification method of inventory costing? a. It allows manipulation of profits b. It does not match expenses against revenues c. It is too expensive to use in complex manufacuring situations d. It is only practical where units are costly and easily distinguishable

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: A positive price-to-book ratio indicates something is wrong with a company's use of its assets. True…

A: In the world of finance and investing, numerous metrics and ratios are utilized to evaluate the…

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: your own words, what are the primary differences between impact analysis and inventory analysis?

A: The inventory analysis an important part of decision making because it is associated with many…

Q: Wrong classification of imported goods may lead to   a. Goods being shipped to wrong address. b.…

A: Solution: Custom duty rates on imports vary from product to product. Therefore it is necessary that…

Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: To hold back unrealized profit in ending inventory, cost of goods sold is decreased. True or False?

A: Unrealized profits in the literal sense means those profits that are not realized yet. Unrealized…

Q: A disadvantage of absorption costing is A.) None of the answers are correct. B.) Both answers are…

A: Absorption costing is a method of accounting for the cost of producing a product that includes both…

Q: Lower of cost and net realizable value a. results in the lowest valuation if applied to the total…

A: It is preferable to value the inventory at lower of cost or net realizable value (LCNRV) in…

Q: Discuss how the inventory process supports the production planning process and the risk to the…

A: The term inventory control process includes overseeing things from the second they are ordered all…

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: f accepting a special order is an example of avoidable costs. True False

A: Avoidable cost are cost that can be avoided if a activity is not undertaken, resulting in cost…

Q: Which of the following is not a disadvantage of using the FIFO cost flow assumption? includes all…

A: Lets understand the basics.There are various methods follow to calculate inventory balance. It…

Q: Please answer in detail and tell me why other options are incorrect........   The most useful…

A: Following methods are used to find the valuation of the ending inventory 1) FIFO - First in first…

Q: Why does Target feel that the retail inventory method will result in inventory beingvalued at the…

A: LCM (Lower of Cost or Market) approach:   It is an approach that values the inventory at historical…

Q: How does Just-In-Time (JIT) system help minimize the inventory investment? Explain.

A: Just-In-Time (JIT) is used for that inventory which is owned by business at reduced amount on…

Q: A company embarked on a lean initiative and was able to significantly reduce of levels of inventory.…

A: Lean Inventory Management is a method of redefining the ways a company handles its supply chain and…

Q: physical flow of inventory

A: Inventory valuation is essential for any business to figure out the correct net income and balance…

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Absorption costing also written as full costing. Under this method, all costs are considered in…

Q: The First- In- First- Out method, which is mainly utilized to assign the average cost of production…

A: First in first out (FIFO) is one of the method of inventory valuation, under which inventories which…

Q: The procedure selected to calculate the cost of the ending inventory has absolutely no effect on the…

A: Eliminating the incorrect option:The method chosen to calculate the cost of ending inventory does…

Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…

A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Q: Why do you think a company would ever choose to use perpetual LIFO as its costing method? It is…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

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: The major criticism of the lower of cost or market rule for valuation of inventory is that

A:

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Lets understand the basics. Generally one of the two costing methods are followed by entities to…

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: Which of the following statements is true of information costs?   a. The relatively large size of…

A: In the world of investing information costs are an important aspect. Information costs, essentially,…

Q: Very high inventory turnover ratio relative to industry norms could possibly indicate the company…

A: The objective of the question is to understand the implications of a very high inventory turnover…

Q: Why is it often difficult for the averageinvestor to take advantage of underpricing?

A: Under Pricing of the stock refers to the situation when the current market price of the company’s…

Q: Analysts must recognize that the use of the specific identification method to value inventory has a…

A: The amount, by which the Inventory Level exceeds the Closing Inventory level is referred to as the…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: the lower cost or market is a method of inventory valuation true or false?

A: Inventory valuation is the accounting process in which the monetary value assigned to the unsold…

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: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: 13. Which is not acceptable for valuation of inventory? a. historical cost c. prime cost d.…

A: Inventory should be valued at cost or Net realisable value whichever is lower.   ▪︎Cost may be the…

Q: It's not unusual for large companies to use different inventory costing methods for different…

A: Large companies often deal with diverse types of inventory, ranging from raw materials to finished…

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.