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What are the two most widely used methods for determining the cost of inventory?
Wiki User
∙ 16y ago
I believe that it is FIFO and LIFO, which is first in first out and last in first out.
Wiki User
∙ 16y ago
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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 is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
Advantages and disadvantages the retail inventory method?
It is cost effective and simple for companies to implement since it reduces the number of physical inventory counts. It is also accepted as a method of determining cost of goods sold for income tax purposes by the IRS.
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 two most widely used methods for determining the cost of inventory are?
Cost or Net Realisable Value, which ever is lower. Net realisable value can also include the cost of repairing damaged inventory to get it to a sellable condition.
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 is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
What inventory cost methods is appropriate for a business who has inventory with a relatively small number of unique items and a high cost per item?
FIFO
Is last in first out a form of inventory evaluation?
No, it's a description of a way of determining cost-of-goods-sold.
What inventory cost methods results in lowest net income during a period of rising inventory costs?
Last-in, first-out (LIFO)
Inventory costing method?
There are different inventory costing methods an accountant can use for cost o goods sold accounting. The methods include last in, first out, average cost method, first in, first out, and specific identification method.
Advantages and disadvantages the retail inventory method?
It is cost effective and simple for companies to implement since it reduces the number of physical inventory counts. It is also accepted as a method of determining cost of goods sold for income tax purposes by the IRS.
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.
Which accounting term best describes assumption made in applying the four inventory methods?
Cost Flow Assumption
What is the GAAP method for determining what inventory is obsolete or slow moving?
The GAAP method for obsolete or slow moving inventory is to account for all inventory using either market value or cost method. The method which results in the lower amount is the one that is used.
What method of inventory cost flows is the cost flow assumed in reverse order?
THERE ARE THREE METHODS OF INVENTORY COSTS FLOW. 1: LIFO=first in first out 2; LIFO= last in first out 3: AVERAGE method and your answer is LIFO
