0
How do the consistency principle and the full disclosure principle affect inventory valuation?
Wiki User
∙ 11y ago
Consistency principle indirectly affects inventory value as one would need to use the same cost assumption all the time (FIFO or avg cost). Full disclosure doesn't affect inventory valuation but one would need to disclose to investors the cost assumption used in the financial statements.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the importance of inventory valuation?
It is a balance sheet disclosure required for public companies' annual reports.
Is weighted average inventory valuation GAAP?
Yes, along with FIFO and LIFO, Weighted average is a generally accepted accounting principle.
What is the separate valuation principle in Accounting?
The Separate Valuation Principle states that inventory should be valued at the lower of cost (costs minus additional costs to make item saleable ,eg.conversion costs,transportation cost etc.) and its Net Realizable value.
What is the difference between pricing inventory and valuation inventory?
in fact there is no diff.
What costs are to included in the valuation of inventory?
suppose
What is the importance of inventory valuation?
It is a balance sheet disclosure required for public companies' annual reports.
Is weighted average inventory valuation GAAP?
Yes, along with FIFO and LIFO, Weighted average is a generally accepted accounting principle.
What is the separate valuation principle in Accounting?
The Separate Valuation Principle states that inventory should be valued at the lower of cost (costs minus additional costs to make item saleable ,eg.conversion costs,transportation cost etc.) and its Net Realizable value.
What is the difference between pricing inventory and valuation inventory?
in fact there is no diff.
What costs are to included in the valuation of inventory?
suppose
Inventory valuation Method?
Following are inventory valuation methods: 1 - Lifo (Last in first out) 2 - Fifo (First in first out) 3 - Average method.
What is Weighted Average of Inventory Valuation Method?
Weighted average inventory valuation method is method in which inventory purchased at any price is put together to calculate one price for allocation in contrast to FIFO or LIFO.
What is Target Store method of inventory valuation?
lifo
How does different inventory valuation method affect the profit of the manufacturing industries?
Revenue-Cost of Goods Sold(CGS)=Gross Margin. The valuation of inventory drives the cost of goods sold (CGS). The higher the value of your inventory, the higher your CGS, thus lower gross margin. The lower the valuation of your inventory, the lower your CGS, thus higher gross margins.
What is the Importance of the Valuation?
It is a balance sheet disclosure required for public companies' annual reports.
An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is?
FIFO
Which inventory valuation model does not allow control of inventory by visual inspection?
Perpetual system Perpetual system
