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A company whose inventory consists of very unique items would probably use which inventory method?
A company with a unique inventory would likely use the specific identification method for inventory management. This approach allows the company to track each individual item and its specific cost, which is essential for unique items that may vary widely in value. This method provides accurate cost of goods sold and inventory valuation, ensuring precise financial reporting.
What else can I help you with?
Is periodic or perpetual inventory method best for mining company?
Periodic
Which inventory pricing method is being used when a company recalculates inventory prices every time a new item is added to the inventory?
Weighted Average
Which of the followign inventory costing methods uses the costs of the oldest purchases to calculate the value of the ending inventory?
The inventory costing method that uses the costs of the oldest purchases to calculate the value of the ending inventory is the First-In, First-Out (FIFO) method. Under FIFO, it is assumed that the oldest inventory items are sold first, so the ending inventory consists of the most recently purchased items. This method often results in higher ending inventory values during periods of rising prices.
Which inventory costing method is often adopted when a company prefers a middle of the road approach?
FIFO
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
Which type of inventory methods used in top ten company?
which type of inventory method used in top ten company?
Is periodic or perpetual inventory method best for mining company?
Periodic
Which inventory pricing method is being used when a company recalculates inventory prices every time a new item is added to the inventory?
Weighted Average
Is a company's gross margin effected by the inventory cost flow method it uses?
no
What is an inventory method for diamond traders?
Inventory methods include first in-first out, or other logical method. In this case, however, diamond traders probably keep inventory records and execute trades in methods that are the most profitable at the time of the trade.
Which of the followign inventory costing methods uses the costs of the oldest purchases to calculate the value of the ending inventory?
The inventory costing method that uses the costs of the oldest purchases to calculate the value of the ending inventory is the First-In, First-Out (FIFO) method. Under FIFO, it is assumed that the oldest inventory items are sold first, so the ending inventory consists of the most recently purchased items. This method often results in higher ending inventory values during periods of rising prices.
Which inventory costing method is often adopted when a company prefers a middle of the road approach?
FIFO
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
What type of depreciation method does the company probably use for income tax purposes?
Straight line method.
What remains the same regardless of the inventory costing method?
Regardless of the inventory costing method used, the total cost of goods available for sale remains the same. Additionally, the ending inventory value and cost of goods sold (COGS) will differ depending on the method chosen (such as FIFO, LIFO, or weighted average), but the overall financial impact on the company's total inventory and net income will be consistent over time. Ultimately, the choice of costing method affects the allocation of these costs but does not change the total amounts.
When a company uses the perpetual inventory method should the inventory account should stay current at all times?
True... Using the Perpeptual Inventory Method would result in each sale and purchase being journaled directly to the inventory account which would keep this account current. Whereas using the Periodic System would result in the Inventory Account showing the correct stock levels at year end only.
What is true regarding inventory cost flow assumptions?
A company may use more than one costing method concurrently.
