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Inventory is reported at cost plus gross profit recognized to date under what revenue recognition methods?
Wiki User
∙ 11y ago
instalment method
Wiki User
∙ 11y ago
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Accounting profit is subjective discuss?
Here's a couple of reasons/examples why profit is subjective:1) Inventory valuation methods (LIFO,FIFO, average cost, etc.)Change the inventory valuation method, and the reported profit will change also.2)Depreciation methods(straight line, double-declining balance, etc.)Again, if thedepreciation methodis changed, reported profit changes too.
What are the methods of inventory management?
Methods of Inventory Management include cycle counting, reviewing stock and incorporating ABC Analysis. By utilizing all of these methods will help keep inventory accurate and profitable.
Different methods of inventory in purchasing?
FIFO and weightage average method are the generally used methods in inventory calculations.
Inventory costing methods place primary emphasis on assumptions about?
Inventory costing methods place primary emphasis on assumptions about flow of costs.
What inventory cost methods is appropinate for a business who has inventorynunique what a relative small number of?
The inventory cost of a business inventory is poo
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
How modified accrual basis of accounting differs from accrual accounting?
The main difference between cash, accrual, and modified accrual accounting is the timing of the recognition of revenue and expenditures. A cash basis of accounting revenue doesn't necessarily mean customers have to pay cash and you have to pay cash for goods and services. It means that revenue isn't recognized (i.e. reported) on your income statement until payment is received from the customer and expenditures aren't recorded on your income statement until you pay for goods or services. With accrual accounting, revenue is recognized when earned and measurable (usually evidenced by delivery of goods or services to a customer and issuance of an invoice for same). Expenditures are recognized when the liability is incurred (usually measured by receipt of goods or services rendered). There are exceptions to the "recognition of expenditures when liability is incurred" (1) operating leases are off-balance sheet financing and only lease payments are recorded as they become due (2) interest on long-term debt is only recognized at each due date (3) inventory and supplies - the value is carried as an asset on your balance sheet but expenditures are not recognized until the inventory is sold or the supplies are used. (4) encumbrances are future liabilities but are not expensed until incurred. Modified accrual accounting is a hybrid of cash and accrual methods. Revenue is recognized when earned, measurable, AND available. Expenditures are still recognized when the liability is incurred.
How do you reduce inventory costs and inventory losses?
Use scientific methods for inventory optimisation. Many software systems available on the market. Hundreds on textbooks.
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.
What are the methods of tax planning?
Tax planning methods for small business include accounting methods and validation methods. Other methods include the accrual method and inventory valuation methods.
Which type of inventory methods used in top ten company?
which type of inventory method used in top ten company?
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
