What is the concept of material inventory error?

Q: Why is it important to consider the relationships amongcost, quality, and selling prices when…

A: The question has covered the relationship between Cost, Quality , and Selling Price For setting up…

Q: your own words, what are the primary differences between impact analysis and inventory analysis?

A: The inventory analysis an important part of decision making because it is associated with many…

Q: Which one of the following sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: Why do auditors consider inventory errors pervasive?

A:

Q: What is inventory turnover Ratio? Explain its significance.

A: Explain the meaning of inventory turnover ratio and its significance:Inventory turnover ratio:…

Q: What happen when the inventories increasing or deacresing

A: Inventories form a part of assets of the entity and comprises of stock of raw material, work in…

Q: Why is materials inspection a prevention costs rather than an appraisal costs?

A: Lets understand the basics. Cost incurred in order to minimize or avoid the defect at the production…

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: Which of the following is not an external failure cost?   a. correcting invoice errors   b. rework…

A: External failure costs are costs incurred after the product or service has been delivered to the…

Q: What is the profession’s recommendation in regard to the use of the term “surplus”? Explain.

A: The professionals has recommended that use of term surplus should be discontinued in balance sheet…

Q: Why costing procedure is different for spoiled or defective material?

A: Spoilage means loss occurred during the production. It occurs due to sub-standard material,…

Q: When assessing inventory management policies, is the current ratio or acid-test ratio more…

A: Current Ratio = Current Ratio is Calculated by dividing the current Assets with current liabilties.…

Q: Refer to Supply Chain systems. What is the oplonich invonton?

A: Supply Chain System: A supply chain is a system of organizations, people, activities, information,…

Q: Why is inventory management especially important for amultinational firm?

A: Inventory Management is significant for Multinational firms. Inventory is generally in the raw…

Q: What is inventory shrinkage? What are some of the reasons for inventory shrinkage?

A: Inventory Shrinkage :  As the name suggests, it is considered as shrinking or shortening of…

Q: What guidance does the Codification provide concerning reporting inventories above cost?

A: Inventory management: Inventory management is defined as a set of processes clearly determined for…

Q: How is the desired closing inventory calculated

A: A production budget is a kind of budget that shows the total number of products that must be…

Q: Identify the importance of marginal and absorption costing on profit determination and inventory…

A: In the costing method known as marginal costing, the fixed cost for the period is entirely written…

Q: How do calculate the Cost of Goods Sold without the beginning inventory nor the ending inventory??

A: Cost of goods sold is the total costs incurred on those units of goods or products which are sold by…

Q: Which of the following would cause periodic ending inventory to be overstated?

A: Note - the answer has been provided on the basis of information available in question. If any…

Q: Describe the effects of misstatement of ending inventory.

A:

Q: Why is inherent risk for the existence of inventory an issue in the expenditure cycle audit?

A:

Q: What is meant by underapplied overhead? By overappliedoverhead?

A: Actual overhead cost: These are the indirect manufacturing costs that are actually incurred while…

Q: When is it necessary to estimate inventories?

A: Inventories are resources which are held to be sold in the market. Inventories can be in the form of…

Q: how to caculate desire ending inventory?

A: Inventory means Stock. Ending inventory, defined as the value of  inventory remaining at the end of…

Q: Which of the following is not an example of a typical external failure cost? Multiple choice…

A: The objective of the question is to identify which of the given options is not a typical example of…

Q: Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c.…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: ntory decline in value?

A: All of the commodities, goods, merchandise, and materials retained by a firm for the purpose of…

Q: What is the purpose of disclosing the difference between the reported LIFO inventory amounts and…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.