Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Question

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Answer 1

Question

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

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Chapter 22 Homework Saved 12 Tableau DA 22-1 (Algo): Quick Study, Allocate indirect expenses LO P2 Help Save & Exit Submit Check my work 1.25 points Skipped Burton Company requests assistance allocating costs and determining the profitability of its two departments: Skis and Snowboards. Shared indirect expenses include rent and supervisor salaries. Use the Tableau Dashboard, with information from Burton's December 31 year-end reports, for our analysis. Select Year→ Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Sales & Costs of Goods Sold Number of Employees eBook $200,000 Ask $150,000 Print $100,000 Skis Snowboards $50,000 References $0 Sales Cost of Goods Sold Sales Cost of Goods Sold SKI SNOWBOARD Square Feet Occupied Snowboards Direct Expenses Skis Snowboards $16,000 $14,000 $12,000 $10,000 $8,000 Skis $6,000 $4,000 Indirect Expense Allocation Base $2,000 Indirect Expense Cost Allocation Base Rent $18,400 Square feet occupied Salaries Expense Supplies Used…

Answer 2

Question

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

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Answer 3

Question

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

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Answer 4

Question

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

Answer 6

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.

Conclusion

Therefore, the correct option is (b), offset against revenue an appropriate cost of goods sold.

Answer 7

Chapter 8, Problem 1STQ

To determine

Identify the option which is correct regarding the primary purpose of inventory cash flow assumption.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

b. Offset against revenue an appropriate cost of goods sold.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Cost flow assumptions can be referred to as the method which determines the flow of costs when an inventory is sold. Instead of keeping a track record for cost of each product sold, a company adopts these methods, and identifies which units were sold. Then, this calculated cost of goods sold is deducted from the revenue to ascertain the operating revenue of business.

Cash flow assumptions differ from specific identification method because the actual physical movement of goods may be unrelated to the flow of costs.

Option “a, c, and d” are not correct answer as per above explanation, only option “b” is correct answer as per above explanation. Hence, the correct answer is option b.