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LIFO inventory accounting for gross profit calculation assumes what?
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∙ 13y ago
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∙ 13y ago
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What is the inventory system in accounting?
Inventory system is more likely recorded in the Balance Sheet section in accounting. It will not be at the Profit and Loss section.
Formula of unrealized profit in accounting?
factory price/cost of production at market value *closing inventory at transfer price
The difference between inventory control and inventory management?
"Inventory Control"focuses on the process of movement and accountability of inventory. This consists of strict polices and processesin regards to: · The physical and systemic movement of materials · Physical Inventory and cycle counting · Measurement of accuracy and tolerances · Good Accounting Practices "Inventory Management" focuses on inventory as an asset or an instrument of value creation. Inventory is managed to maximize value, exposure, and/or profit while minimizing cost and spend. This consists of: · Product smoothing and leveraging · Selective product placement · Velocity and turns calculation development · Inventory reduction and product rationalization · MRP
What are the uses and application of basic mathematics in the hotel restaurant and management?
Scheduling, calculations for payroll and accounting, inventory, profit and loss calculations, etc..
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
How can you use business accounting software for your small organic food company?
Accounting software has become a necessity for all types of businesses and self-employed individuals out there. It isn’t optional anymore. Processing a large volume of data manually or leaving all the accounting and financial management tasks to your accountant do not seem a wise decision. No matter how many accountants you hire, you are going to need an advanced accounting system that records the sensitive information, generate quality reports, help with inventory management and payroll calculation, and the list goes on. accounting receivable software is used for eliminating costly human errors. It simplifies the calculation process and ensures smoother management. Here is List of Best Accounting Software for Small Business: Target One Vasy ERP ERPNext CaniasERP StrategicERP Get More details about above listed Accounting Software at Technology Counter.
Difference between inventory control and inventory management?
"Inventory Control" focuses on the processof movement and accountability of inventory. This consists of strict polices and processes in regards to: · The physical and systemic movement of materials · Physical Inventory and cycle counting · Measurement of accuracy and tolerances · Good Accounting Practices "Inventory Management" focuses on inventory as an asset or an instrument of value creation. Inventory is managed to maximize value, exposure, and/or profit while minimizing cost and spend. This consists of: · Product smoothing and leveraging · Selective product placement · Velocity and turns calculation development · Inventory reduction and product rationalization · MRP
Net Profit calculation?
net profit is a profit after tax(PAT)
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.
Is economic profit equal to accounting profit?
no
What is the distinction between cost accounting and management accounting?
Cost accounting is concerned with cost accumulation for inventory valuation to meet the requirements of external reporting and internal profit measurement.Management accounting relates to the provision of appropriate information for decision-making, planning, control and performance evaluation. (Extracted from Cost and Managment Accounting by Colin Drury, Sixth Edition)
