A method used by retailers to achieve the LIFO cost flow without tracking individual units. A further advantage is that pools of products are used. This will likely mean less liquidation of LIFO cost layers that would...
A method used by retailers to achieve the LIFO cost flow without tracking individual units. A further advantage is that pools of products are used. This will likely mean less liquidation of LIFO cost layers that would...
A method used by retailers for estimating the cost of ending inventory without tracking the individual units of product.
A method for estimating the inventory of a retailer. This method requires that the retail amounts and the related cost amounts are available for beginning inventory and purchases. An illustration of this technique is...
What are the ways to value inventory? Author: Harold Averkamp, CPA, MBA Definition of Valuing Inventory Generally, the financial statements of a U.S. company must report its inventory at its historical cost (not at its...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
Inventory and Cost of Goods Sold Quiz and Test | AccountingCoach Inventory and Cost of Goods Sold(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press...
What is a non-discount method in capital budgeting? Author: Harold Averkamp, CPA, MBA Definition of Non-discount Method of Capital Budgeting A non-discount method of capital budgeting is one that does not consider the...
What is the meaning of base year? Author: Harold Averkamp, CPA, MBA In accounting, base year may refer to the year in which a U.S. business had adopted the LIFO cost flow assumption for valuing its inventory and its cost...
Why does LIFO usually produce a lower gross profit than FIFO? Author: Harold Averkamp, CPA, MBA Definition of LIFO LIFO (which is the acronym for Last In, First Out) is a cost flow assumption in which the most recent...
What are the disclosures for a manufacturer's inventory? Author: Harold Averkamp, CPA, MBA A manufacturer should disclose the following categories of inventory: raw materials, work-in-process, finished goods,...
Our Explanation of Evaluating Business Investments compares four of the techniques for reviewing potential capital expenditures. You will be introduced to accounting rate of return, payback, net present value, and...
Inventory and Cost of Goods Sold Author: Harold Averkamp, CPA, MBA 142 Q&A Popular Recent What is the cost of goods sold? What is the significance of FOB Shipping Point and FOB Destination? What is the difference between...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
In estimating the ending inventory under the retail method the cost ratio is the cost of goods available divided by the retail value of the goods available.
The allocation of common costs based on the sales value of the products that emerge. For example, a company develops a large parcel of land at a cost of $5 million dollars. Individual lots will be sold for $100,000 to...
What is the difference between FIFO and LIFO? Author: Harold Averkamp, CPA, MBA Difference Between FIFO and LIFO The difference between FIFO and LIFO will exist only if the unit costs of a company’s products are...
Accounting Principles Author: Harold Averkamp, CPA, MBA 242 Q&A Popular Recent What is the accrual basis of accounting? What are accruals? What is the cost of goods sold? What is owner's equity? What is a capital...
Are LIFO inventory amounts ever written-up to their market value? Author: Harold Averkamp, CPA, MBA LIFO inventory amounts will not be written-up, even when the current market value of the inventory is far greater than...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
What is inventory valuation? Author: Harold Averkamp, CPA, MBA Definition of Inventory Valuation In the U.S., inventory valuation is the dollar amount associated with the items remaining in a company’s inventory....
Accounting Principles Quiz and Test | AccountingCoach Accounting Principles(Practice Quiz) Download PDF Author: Harold Averkamp, CPA, MBA For multiple-choice and true/false questions, simply press or click on what you...
Balance Sheet Author: Harold Averkamp, CPA, MBA 369 Q&A Popular Recent What is the difference between accounts payable and accounts receivable? How do I calculate the amount of sales tax that is included in total...
The recognition that a dollar in the present is more valuable than a dollar in the future. Present-value calculators and present-value tables assist in converting future dollars to the present value in order to make a...
What does it mean to rotate stock? Author: Harold Averkamp, CPA, MBA Definition of Rotating Inventory Stock To rotate stock means to arrange the oldest units in inventory so they are sold before the newer units. The goal...
What is the FISH inventory method? Author: Harold Averkamp, CPA, MBA FISH is the acronym for first-in, still-here. FISH is an attempt to bring humor to the fact that some items have been sitting in inventory for years....
Should capital budgeting decisions be based on cash flows or revenues and expenses? Author: Harold Averkamp, CPA, MBA Definition of Capital Budgeting Decisions Capital budgeting assists in the investment decisions...
An accounting guideline where the U.S. dollar is assumed to be constant (no change in purchasing power) over time. This allows an accountant to add one dollar from a transaction in 2010 to one dollar in 2024 and to show...
Our Explanation of Improving Profits will assist you in focusing on the costs and revenues that are relevant (and ignoring those which are not relevant) for improving profits and eliminating losses. Examples of the...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Our Explanation of Inventory and Cost of Goods Sold will take your understanding to a new level. You will see how the income statement and balance sheet amounts are affected by the various inventory systems and cost flow...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
What is value billing? Author: Harold Averkamp, CPA, MBA Value billing is a way of billing a client for services provided. Basically, the amount billed is based on the value of the service (or information) instead of the...
Where are accruals reflected on the balance sheet? Author: Harold Averkamp, CPA, MBA Definition of Accruals The accrual of expenses and liabilities refers to expenses and/or liabilities that a company has incurred, but...
What accounts for the difference in inventory values between periodic LIFO and perpetual LIFO? Author: Harold Averkamp, CPA, MBA Difference Between Periodic LIFO and Perpetual LIFO The difference between periodic LIFO...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
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