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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?
Wiki User
∙ 14y ago
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?
Wiki User
∙ 14y ago
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With inflation what are the implications of using LIFO and FIFO inventory methods and how do they affect the cost of goods sold?
LIFO inventory valuation assumes the latest purchased inventory becomes part of the cost of goods sold, while the FIFO method assigns inventory items that were purchased first to the cost of goods sold. In an inflationary environment, the LIFO method will result in a higher cost of goods sold figure and one that more accurately matches the sales dollars recorded at current dollars.
What are the limitation of economic order quantity approach?
It is necessary for the application of EOQ order that the demands remain constant throughout the year. It is also necessary that the inventory be delivered in full when the inventory levels reach zero.
What do economic models assumes?
That world peace is everything
What circular flow models assumes the economy consists of which sectors?
households and firms
Economic buyer theory assumes what?
Get the most for your money, get the cheapest there is,quantity is key.
What is perpetuity inventory system?
An inventory that assumes that the first items purchased (first in) were the first items sold (first out).
What is FIFO perpetual inventory system?
An inventory that assumes that the first items purchased (first in) were the first items sold (first out).
LIFO inventory accounting for gross profit calculation assumes what?
Last In First Out
With inflation what are the implications of using LIFO and FIFO inventory methods and how do they affect the cost of goods sold?
LIFO inventory valuation assumes the latest purchased inventory becomes part of the cost of goods sold, while the FIFO method assigns inventory items that were purchased first to the cost of goods sold. In an inflationary environment, the LIFO method will result in a higher cost of goods sold figure and one that more accurately matches the sales dollars recorded at current dollars.
LIFO assumes that inventory costs flow in the order incurred. True or False?
False
Fifo stands for first out what does that actually mean?
FIFO assumes that the remaining inventory consists of items purchased last.
Constant growth valuation model for stock?
The constant growth valuation model assumes that a stock's dividend is going to grow at a constant rate. Stocks that can be used for this model are established companies that tend to model growth parallel to the economy.
First in first out method?
First in first out is the accounting term used to describe the method to allocate values. The method assumes the inventory that arrived first was used first.
What are the limitation of economic order quantity approach?
It is necessary for the application of EOQ order that the demands remain constant throughout the year. It is also necessary that the inventory be delivered in full when the inventory levels reach zero.
Under a perpetual inventory system?
A perpetual inventory system relies on using documents on an active, day-to-day basis for a precise report at any time; a physical inventory system is a more rarely-used approach to doing an actual...An inventory that assumes that the first items purchased (first in) were the first items sold (first out).One keeping continual track of additions or deletions in materials, work-in-process, and cost of goods sold on a day-to-day basis Factors i) Company must have a proper system of receipts and...
Which of these statements is trueThe employee and employer both assume the role of the buyer?
The employer usually assumes the role of the buyer, and the employee assumes the role of the seller.
The facts that a function assumes to be true of the arguments that it receives are called?
assumes fact
