Very high inventory turnover ratio relative to industry norms could possibly indicate the company does not carry adequate inventory, so shortages could potentialy hurt reverue. Select one: True False
Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…
A:
Q: a red flag of inventory theft: an increase in uncollectible sales an increase in bad debt expense an…
A: Inventory theft can have an indication through 1. Increase in uncollectible sales 2. Increase in bad…
Q: Production to stock is justified when the plant has excess production capacity. Inventory production…
A: Production to stock : Production to stock means producing required stock to consumers and providing…
Q: Discuss how the inventory process supports the production planning process and the risk to the…
A: The term inventory control process includes overseeing things from the second they are ordered all…
Q: Why is the level of and movement in the operating expense percentage an important indicator of…
A: Operating expenses are the expenses required for the operation of the business.
Q: Like many technology companies, TechnoTools operates in an environment of decliningprices. Its…
A: The last in, first-out (LIFO) is a system utilized to store reports of the latest items first…
Q: Firms keep supplies of inventory for which of the following reasons? To provide a feeling of…
A: Hi, since there are multiple questions, I will answer the first question. Would request you to…
Q: Why might a company estimate ending inventory instead of performing a physical count? O The…
A: Ending inventory counting and valuation helps a business to know value of inventory still available…
Q: . Which of the following costs will tend to increase if a firm switches to a restrictive short-term…
A: Answer: The correct option would be option C (I, III, and IV only). Introduction: Restrictive policy…
Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…
A: a. The ethical issue involved in the situation is, use of cost-of-goods-sold method to write down…
Q: Evaluate different types of risk and costs if the financial director proposed to reduce inventory.…
A: The current ratio is computed by dividing current assets by current liabilities. The acid test ratio…
Q: In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory…
A: Inventory turnover ratio:Inventory turnover ratio is used to determine the number of times inventory…
Q: A company embarked on a lean initiative and was able to significantly reduce of levels of inventory.…
A: Lean Inventory Management is a method of redefining the ways a company handles its supply chain and…
Q: Application of the lower-of-cost-or-market rule results in inconsistency because a company may value…
A: Lower of Cost or market rule states that while estimating value of the company's Inventory it is…
Q: Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…
A: GIVEN Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…
Q: When a company's days of inventory on hand are increasing, this might indicate that: O The company…
A: Days of inventory on hand means days required the company to change its inventory in cash or in…
Q: By having different inventory methods that result in different costs of goods sold and gross profit,…
A: Inventory refers to the stock of work-in-process, raw material & finished goods in the company.…
Q: Identify the following as applying more to lean (L) or to traditional (T) businesses. Inventory…
A:
Q: Zimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared tothe cost of replacing…
A: If a company follows FIFO method, then the inventory will go based on first in first out. If a…
Q: A master production schedule is most likely to be useful in O identifying erroneous journal entries.…
A: Solution: A master production schedule is the prepared by company to estimate its production for the…
Q: “Managers should always buy inventory in quantities that result in the lowest purchase cost per…
A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods products…
Q: Th e information provided by a low-quality fi nancial report will most likely :A . decrease company…
A: SOLUTION:- Financial reporting quality is related to the quality of the information contained in…
Q: Which of the following statements is true?
A: Companies tries to use the methods of the inventory valuation so that the tax liability of the…
Q: Amber Auto Parts adopted the dollar-value LIFO inventory method. The company has consistently used a…
A: LIFO stands for Last-In, First-Out, and assumes that the most recently acquired inventory is the…
Q: . A low inventory turnove he firm has an above-ave nventory is obsolete or da D True D False
A: A low inventory turnover will often mean you're holding too much stock, which will increase your…
Q: Which of the following may be an indication of inventory theft? COGS is significantly different…
A: Inventory can be defined as the stock of goods or products that is manufactured and stored by the…
Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…
A: In finance we make use of various financial ratios to determine the financial health of a company.…
Q: ts) An auditor recently asked an accounting manager to perform a LCM test on a batch of inventory.…
A: Valuation of Inventory: The lower of cost or market (LCM) approach stipulates that when valuing a…
Q: Analysts must recognize that the use of the specific identification method to value inventory has a…
A: The amount, by which the Inventory Level exceeds the Closing Inventory level is referred to as the…
Q: A company follows the LIFO inventory method and is experiencing rising costs. What impact will this…
A: When a company follows the LIFO inventory method and experiences rising costs, the ending inventory…
Q: Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?…
A: If the the earnings are negetive, then value would also be negetive, which is not possible. If…
Q: 24.Which of the following is not a potential consequence of carrying insufficient inventory to meet…
A: Inventory is a current asset.
Q: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…
A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…
Q: Which of the following are possible reasons for a decrease in the accounts payable turnover ratio? O…
A: The accounts payable turnover ratio is a financial metric that measures how quickly a company pays…
Q: 14. Which of the following is most likely to be a symptom of overtrading? A Static levels of…
A: Overtrading: When a company expands too quickly without the financial capacity to support it, this…
Q: It's not unusual for large companies to use different inventory costing methods for different…
A: Large companies often deal with diverse types of inventory, ranging from raw materials to finished…
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- Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not stocking enough merchandise can result in lost sales, but carrying too much inventory increases costs and lowers margins. Both circumstances reduce profits. One measure of a reseller’s inventory management effectiveness is its stockturn rate (also called inventory turnover rate for manufacturers). The key to success in retailing is realizing a large volume of sales on as little inventory as possible while maintaining enough stock to meet customer demands. Refer to Appendix 2: Marketing by the Numbers, and determine the stockturn rate of a retailer carrying an average inventory at cost of $350,000, with a cost of goods sold of $800,000. If this company’s stockturn rate was 3.5 last year, is the stockturn rate calculated above better or worse? Explain.Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B. Lower expected future prices from the manufacturer OC. Slow advances in product development O D. Long product shelf life O E. Volume discounts from the manufacturerA Moving to another question will save this response. Question 10 For a retailer with inventory to sell, the acid-test ratio will be greater than the current ratio, thus providing a less stringent measure of liquidity. less than the current ratio, thus providing a more stringent measure of liquidity unimportant because it doesn't include inventory greater than the current ratio, thus providing a more stringent measure of liquidity. A Moving to another question will save this response.
- Which of the following is correct about the Limitations of accounting? Select one: O a. Accounting not looks at quality aspect b. there is no bias in accounting c. Price level changes consider in accounting O d. none of the options are correctRetailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not stocking enough merchandise can result in lost sales, but carrying too much inventory increases costs and lowers margins. Both circumstances reduce profits. One measure of a reseller’s inventory management effectiveness is its stockturn rate (also called inventory turnover rate for manufacturers). The key to success in retailing is realizing a large volume of sales on as little inventory as possible while maintaining enough stock to meet customer demands. Determine the stockturn rate of a retailer carrying an average inventory at cost of $850,000, with a cost of goods sold of $1,800,000.which of the following is considered a signal of success for a manufacturing company? A) A low quick ratio B) A high inventory turnover ratio C) A high current ratio D) Low quality costs
- Explain why some management accountants believe that absorption costing may provide an incentive for managers to overproduce inventory.What is the main criticism of LIFO? A. It presents a balance sheet figure that is out-of-date. B. It artificially creates a higher income. C. It utilizes a unit cost that has no evidence of existence. D. It is often complicated to implement, especially if inventory costs change frequently.A firm that uses LIFO accounting for inventory in times of rising investory costs will always report lower profit margins than if it used FIFO. Is this correct?
- 2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. B. Which inventory method would best meet Shepherd's goal? Enter answer here. C. What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need? Enter answer here.Discuss how the inventory process supports the production planning process and the risks to the production process if inventory process control goals are not achieved. do not limit your discussion to losses from fraud.answer these question in just two sentences. a..“If a firm sold some inventory on credit, its current ratio would probably not change much, but its quick ratio would increase.” If it is possible give reason in two sentences. b. In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock. If it is false give reason in two sentences. c. “It is appropriate to use the fixed assets turnover ratio to appraise firms' effectiveness in managing their fixed assets if and only if all the firms being compared have the same proportion of fixed assets to total assets.” If you are not agreed with this statement give justification in two sentences.