Higher Total Assets Higher Cost Higher Inventory Costs of Goods Sold Net Income Rising Declining FIFO

Under which of the following inventory costing methodologies can lower-of-cost-or-market be used? O FIFO LIFO Weighted average Specific identification

Discuss the effect of absorption and marginal costing on inventory valuation and profit determination. Highlight both advantages and disadvantages of both methods

What does a very high inventory turnover ratio signify? Please provide your own example to explain your point.

17. Models of inventory systems frequently consider the relationships among a beginning inventory, a production quantity, a demand or sales, and an ending inventory. For a given production period j, let * 2, d, beginning inventory for period j (ending inventory from period j-1 production quantity in period j demand in period j ending inventory for period j a. Write the mathematical relationship or model that shows ending inventory as a function of beginning inventory, production, and demand. b. What constraint should be added if production capacity for period j is given by C, ? e. What constraint should be added if inventory requirements for period j mandate an ending inventory of at least 1;?

Explain in 175 words: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of goods sold and net income if prices are rising. What if the prices are declining?

Explain an example how to calculate net cost of inventory.

The answer is d, ex In a period of rising prices, the inventory method which tends to report the lowest inventory is a. FIFO. b. LISH. c. Specific identification. d. Average - cost.

During periods of rising costs, which inventory costing method produces the highest gross profit?

Which method would produce the same unit cost for Inventory and Cost of Good Sold in periods of rising prices? Select one: a. Weighted Average b. FIFO c. LIFO