Which one of the following is a reason for the just- in-time inventory policy? Select one: A. The manufacturer may want to ensure that production is uninterrupted. B. It is possible that future supplies may become scarce. C. The manufacturer wants to keep the investment in inventory to a minimum. D. The prices of the materials are expected to rise shortly.

Q: Ace Company is a retailer operating in an industry that experiences inflation (rising prices). Ace…

A: Companies using FIFO method for inventory valuation , reports higher inventory which generally leads…

Q: It is the point in which you are scheduled to repurchase raw materials for inventory. * Your answer…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: State whether the following statements are true with reasons: Safety stock increases as demand…

A: Business needs various type of material in its stock. For every order, some costs needs to be…

Q: State which of the following inventory methods would best attain the goals of management. Indicate…

A: Since you have asked multiple questions, we answered 3 questions. To get the answer to all kindly…

Q: The level of inventory a company maintains has important economic consequences, and it involves…

A: Ending inventory refers to the inventory which is left at the end of the accounting period. This…

Q: Which one of the following is a reason for the just-in-time inventory policy? Select one: O A. The…

A: Just in time inventory policy is a policy of inventory management the main purpose of which is to…

Q: Which one of the following inventories may not be valued for balance sheet purposes at the…

A: Inventory is valued only at lower of Cost or Net realizable value(which is the selling price minus…

Q: a) Compare the periodic versus the perpetual system as a control device. b) What sort of…

A: The periodic and perpetual inventory Systems are two systems used to track the quantity of goods…

Q: What is the possible negative consequence of the food business having a long average age of…

A: Days sale of inventory refers to the average age of inventory. It computed using the formula: days…

Q: For all short exercises, assume the perpetual inventory system is used unless stated otherwise.…

A: Definition:

Q: Which of the following is an advantage of the periodic inventory system?A. frequent physical…

A: When a physical inventory count is performed, a periodic inventory system just updates the ending…

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: If the beginning finished goods inventory (in units) is more than the desired finished goods ending…

A: Total production required is calculated as sum of forecasted unit sales and planned finished goods…

Q: Lily, a new auditor in an electronics manufacturing company, is reviewing the appropriateness of the…

A: A minimum stock level seems to be a quantity that denotes the minimum stock level under which real…

Q: How does Just-In-Time (JIT) system help minimize the inventory investment? Explain.

A: Just-In-Time (JIT) is used for that inventory which is owned by business at reduced amount on…

Q: The number of units that a company should add to inventory with each order to minimize the total…

A:

Q: In which of the following scenarios does the basic Economic Order Quantity model can be applied? * O…

A: Lets understand the basics. Economic order quantity(EOQ) is a quantity at which ordering cost and…

Q: The ability to lower overall inventory warehousing costs is an advantage of which type of system…

A:

Q: FAST PLZ - Which of the following element of cost is important in calculating the cost of closing…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: For all short exercises, assume the perpetual inventory system is used unless stated otherwise.…

A: Inventory Costing Method:   Under inventory costing method, the flow of cost of inventory is…

Q: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…

A: Definition:   LIFO: Under this inventory method, the units that are purchased last are sold first.…

Q: What critical assumptions has TESLA made to value inventory? Does TESLA use FIFO or LIFO? Explain…

A: Inventory Valuation There are different method which are adopted in the valuation of the inventory.…

Q: Which of the following is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Lean businesses aim to: Reduce inventory levels--true

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: . What is the major advantage of using a perpetual inventory system? a. It provides efficient…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Keeping track of inventory and keeping carrying costs down.  How do you think those issues would…

A: If business organized their inventory management system, the warehousing cost tends to be reduced…

Q: Garcia Company is trying to decide whether to purchase identical inventory from one of the following…

A: Under F.O.B. shipping point, shipping cost is paid by the buyer. Under F.O.B. destination, shipping…

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

A:

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: CVP analysis makes all of the following assumptions except     a change in volume is the only…

A: In order for a CVP analysis to be accurate, certain assumptions must be met. These assumptions are:…

Q: Ward Hardware does not expect costs to change dramatically and wants to use an inventory costing…

A: Perpetual Inventory System is an accounting system of valuing the inventory where there is a need…

Q: Interpretation of the inventory holding period depends on the industry in which a business operates.…

A: More the inventory holding more the carrying and holding cost, hence business should encircle that…

Q: Inventory management is an important aspect of retail strat- egy. For example, it is important to…

A: Reorder point is that stock quantity which should be ordered in order to cover up the time in which…

Q: What is true in explaining ABC analysis? This process divides items into three classes according to…

A: Hi, since there are multiple questions posted, as per our guidelines we will answer the first…

Q: Of course, there is uncertainty in Webster’s usagerate as well as in delivery times, so the…

A:

Q: Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not…

A: Stock turn rate refers to the rate which shows the number of times the business turned over and is…

Q: Typically, the impact of the LIFO reserve is to decrease cost of goods sold and decrease ending…

A: LIFO method last in first out so LIFO method take last cost of product into account so do not older…

Q: Retailers need merchandise to make sales. In fact, a retailer’s inventory is its biggest asset. Not…

A: Stock turnover rate is the rate which a business computes in order to determine and know about how…

Q: The amount of raw material purchased in a period may be different than the amount of material used…

A: finished goods inventory may fluctuate during the period.   finished goods inventory does not…

Q: Assume that the ending inventory of a merchandising firm is overstated by $40,000. a. By how much…

A: The cost of goods sold formula is calculated by adding purchases for the period to the beginning…

Q: Which of the following statements about the margin of safety is (are) correct? a. producing units…

A: Margin of safety is difference between actual sales and break even sales. Sales of more units…

Q: In the case of decrease the operating cash cycle, which one of the following actions should be…

A: cash flow from operating activities include normal operating of firm.

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.