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What method gives highest or lowest ending inventory when prices are low?
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What is the inventory valuation method that results in the lowest taxable income in a period of inflation?
LIFO method
The inventory method which results in the inventory value on the balance sheet that is closest to current cost is the?
FIFO
Method of inventory valuation that assumes merchandise is sold in the order of its receipt The first-price in is the first-price out Hence cost of sales is based on older dollars Ending inventory you?
Methods of valuing the stock are two which are FIFO(first in first out and weighted average.BUT what the best metod of valuing stock during inflation?
Is fifo the inventory costing method that follows the physical flow of the goods?
no, FIFO, LIFO, and weighted-average method are cost flow assumptions these assumptions bear no relation to the physical flow of goods; they are merely used to assign costs to inventory units.
The inventory valuation method that has the advantages that it assigns a value to the inventory on the balance sheet that approximates current cost and also mimics the actual flow of goods is called.?
lifo
In a period of rising prices the inventory method which tends to give the highest reported inventory?
Hi - in periods of rising prices, the FIFO (fist in, first out) will give the highest ending inventory. The other two options (LIFO last in first out) will give the lowest ending inventory and the average method will give between the two. Hope this helps!
What is the inventory valuation method that results in the lowest taxable income in a period of inflation?
LIFO method
Which inventory method yields highest gross profit?
FIFO
The inventory costing method that reflects the cost flow in the reverse order and will report the earliest costs in ending inventory is?
The inventory costing method that reflects the cost flow in the reverse order and will report the earliest costs in ending inventory is last in first out. This makes use of a perpetual inventory system.
When the cost of inventory is rising which inventory cost flow method will produce the lowest amount of cost of goods sold?
LIFO
When prices are increasing which inventory method will produce the highest cost of goods sold?
Lifo (Last in first out) method will produce highest cost of goods sold because inventory with higher value will be charged first as it arrived in last.
The inventory costing method that reflects a cost flow that is in the order in which the costs were incurred and will report the most current prices in ending inventory is?
First in first out
What are the inventory control techniques?
The techniques of inventory control are as follows:- 1. First In First Out Method(FIFO) 2.Last In First Out Method(LIFO) 3.Highest In First Out Method(HIFO) 4.Base Stock Method 5.Simple Average Method 6.Weighted Average Method
What methods do not require a physical inventory periodic inventory system perpetual inventory method retail method or gross profit method?
periodic inventory system
What is a consecutive numbering method?
consecutive numbering method - A method in which consecutively numbered records are arranged in ascending number order - from the lowest number to the highest number.
What is difference between periodic inventory and perpetual inventory?
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a continuous basis after each transaction (Purchase or Sell). Within Retail industry, periodic inventory method used for inventory valuation at the stores, whereas distributer like SuperValu (in US) follows perpetual inventory method to track inventory in their distribution centers. As a best practice, some of the retail companies are using perpetual accounting method to track inventory available in warehourses and distribution centers. In an idealistic world, perpetual inventory method can provide the true and real time inventory information, however due to complexities in consolidating all the purchases, sales, shrinkages and other market factors, it is advisable for retail companies to follow periodic accounting method to analyze and review the results before presenting the inventory valuation results to internal and external agencies like Shareholders, Income Tax Authorities, et el.
If merchandise inventory is being valued at cost and the price level is steadily rising the method of costing that will yield the highest net income is?
The method of costing that will yield the highest net income is FIFO. FIFO stands for first in, first out.
