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FIFO First in first out
LIFO Last in last out
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Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory?
FIFO method is based on the actual cost of each particular unit of inventory. In this method, inventory which is purchased first is sold out first. It ensures that old inventory is not piled up in storage and most companies use this method to evaluate their inventory.
The inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred is?
FIFO
Is the aging of accounts receivable method based upon the principle that the longer an account is overdue the higher the risk of nonpayment?
Yes, it is based upon the principle that the longer an account is overdue, the higher is the risk of nonpayment.
What is the method to determine the right inventory level?
Determine demand based on historical sales records. Then determine the amount of time it takes for the supplier to ship goods to the store. Then figure out what the minimum amount of inventory you could survive on without completely running out during the ordering/shipping period. Set up your inventory ordering person or computer to automatically order a new shipment when your inventory hits that minimum inventory level.
Write short note on cash based accounting?
Cash Method Accounting This kind of accounting is used when you want to report income and earnings during the period of fiscal accounting. For legal and government entity, September 30 is time of filing and the rest of the companies; it is the end of the year. Cash based accounting means that when you receive the money the sales are recorded right away. The expenses is also recorded when they are paid. Cash based method is good if your income is less than one million and you instantly collect money for your product and service. Ironically the government used this method even if they earn more than trillion dollars. If you choose cash based method accounting, there are a lot of benefits that go with it. Assess first your business because if cash based method can fit your process then you can save money from book keeping. If you don't maintain an inventory or you don't have customer accounts, then cash based method is a good choice because it much cheaper. With this method you can see right away if your business is becoming profitable. Cash based accounting is a very simple method but it can only record cash transactions and doesn't take note about everything else. It can never work for businesses who doesn't credit or offer credit. If your business is not keeping inventory then this is a good choice. With this kind of accounting, there are no account receivable and account payable.
Discuss the features of computer based inventory system?
COMPUTER BASED INVENTORY SYSTEM COMPUTER BASED INVENTORY SYSTEM
Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory?
FIFO method is based on the actual cost of each particular unit of inventory. In this method, inventory which is purchased first is sold out first. It ensures that old inventory is not piled up in storage and most companies use this method to evaluate their inventory.
The inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred is?
FIFO
Which IDS method is operating system dependent?
The IDS method that is operating system dependent is Network Based
How are diesel oil inventories measured?
They are measured by the gallon and converted to dollars based on the inventory valuation method being used.
What is stock aging?
Stock aging refers to the process of categorizing inventory based on its age or how long it has been sitting in the warehouse or store. This helps businesses identify and prioritize older stock that needs to be sold or utilized first to avoid obsolescence or spoilage. By tracking stock aging, businesses can better manage inventory levels and make strategic decisions regarding pricing, promotions, and purchasing.
How just in time system work?
a JIT system is a computer based perpetual Inventory system that tracks and calculates availability, lead time, and usage to deliver the least amount of products needed "Just in Time" to reduce on-site inventory costs.
Is the aging of accounts receivable method based upon the principle that the longer an account is overdue the higher the risk of nonpayment?
Yes, it is based upon the principle that the longer an account is overdue, the higher is the risk of nonpayment.
What is the meter method?
THe SI system or metric system is based on meter (m) as the basic unit of measure.
Find out how to control inventory control system?
Investing in inventory management software is one of the most effective ways to gain control of your company's inventory. Inventory is tracked in real time using a perpetual inventory control system. You may increase quality control by using an inventory management system. Inventory control, often known as stock control, is the process of regulating and optimizing the warehouse inventory of your firm. Hone your predicting skills. Use the FIFO (first-in, first-out) approach (first in, first out). Identify stocks with a low turnover rate. Carry out an inventory audit. Use cloud-based inventory management software. Always keep an eye on your inventory levels. Reduce the amount of time it takes to fix equipment.
Can you run an inventory check based on the barcode scanner?
The bar code scanner is usually part of an inventory tracking system in bigger stores.Whatever it in inputs is automatically sent to the inventory tracking system.That's not common for basic systems like small retailers might have.
What is the method to determine the right inventory level?
Determine demand based on historical sales records. Then determine the amount of time it takes for the supplier to ship goods to the store. Then figure out what the minimum amount of inventory you could survive on without completely running out during the ordering/shipping period. Set up your inventory ordering person or computer to automatically order a new shipment when your inventory hits that minimum inventory level.
