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during inflation the best method to use inventory valuation that produces that produces that least amount of profit is
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During periods of inflation why do suppliers may temporarily withhold goods that can be stored for long periods?
When faced with inflation, suppliers prefer to hold on to goods that will maintain their value rather than sell them for cash that loses its value rapidly.
What is inflation risk?
inflation reducing the value of investors' financial assets
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
Advantages of inflation accounting?
An advantage of inflation accounting, is that it can correct problems with inflation. The negative part about inflation accounting is that it is not fair value accounting.
What do you think happens to the value of investments that grow slower than inflation?
If an investment grows slower than inflation, its real value decreases.
Why did so many people depend on the stock market?
In times of inflation, stocks tend to increase in value.
The conversion of preferred stock may be recorded by the?
book value method
Why did roman coins decrease in value during the 200?
Purchasing power fell because of inflation.
What stock valuation method is acceptable according to the accounting standard fifo?
First stock should consumed first and then other stock. Majority of the companies are following weighted average method to value inventories. In India, the Income Tax authorities only allow FIFO & Weighted Average Method.
Why roman coins decreased in value during the AD 200?
Purchasing power fell because of inflation.
Why did roman coins decrease in value during the AD 200s?
Purchasing power fell because of inflation.
Is cash is valued at par value?
Par value is the standard price of securities such as Stock and Bonds; it has nothing to do with cash valuation. Cash is stated on the financial statements at Nominal Value (i.e., current dollars unadjusted for inflation).
What is weighted average method of inventory management?
The total value of material divided by the total quantiy of stock
During periods of inflation why do suppliers may temporarily withhold goods that can be stored for long periods?
When faced with inflation, suppliers prefer to hold on to goods that will maintain their value rather than sell them for cash that loses its value rapidly.
Why did Germanys economy collapse in 1923?
The value of Germany's currency dropped and inflation soared. <---novanet answer
What is inflation risk?
inflation reducing the value of investors' financial assets
What is better for the economy low inflation or high inflation?
Generally, low inflation is better for society because inflation has costs associated with the reallocation of assets and their value (that is, it costs money for people to change their decisions when inflation changes the value of their goods/services).
