How does the choice of inventory valuation method affect

Assignment Help Accounting Basics
Reference no: EM13854118

QUESTION 1)

Selecting the type of inventory system is very important to an organization. How does the choice of inventory valuation method affect the amount of net income reported by a company? In a period of increasing prices, why would the company tax accountant prefer the last in, first out method while the CEO would prefer first in, first out? Why is this important?

QUESTION 2)
Many of us assume that as time passes, the cost of supplies/inventory will go up; therefore, we base our selection of inventory method on this assumption. What if the cost of inventory actually decreases over time, such as in the technology industries? Would you make the same choice of inventory method? Anyone have thoughts on this?

QUESTION 3)
Has anyone noticed how inventory is taken in organizations that are open 24 hours, such as grocery stores? Is this an effective way to take inventory? How do the organizations ensure an accurate count is taken when products are flowing out the door while inventory is being taken?

QUESTION 4)

Technology has also had huge impacts in this area. For example, many companies have adjusted their systems to meet their needs. Is anyone familiar with any companies that have excelled with the JIT model? What challenges do you think they face and how do they overcome them?

QUESTION 5)

Taking inventory requires lots of time and resources. It can even mean closing your business to get the job done. In examples that have been provided, staff is responsible for taking inventory counts. Some companies elect to have outside agencies come in to take inventory. In your opinion, is it better to have staff complete the inventory or an outside agency? Why? Anyone else have thoughts on this?

QUESTION 6)

What information does an organization consider prior to selecting their inventory method? Once a method is selected, it is very difficult to change to another method. Therefore, this decision can have a huge impact on an organization's financial statements. Thoughts, anyone?

Reference no: EM13854118

Previous Q& A

  What effect if any will this have on ebonys keogh

Ebony explains that in addition to her plum pudding business she is employed by Marley Enterprises and is covered under Marley's corporate plan. What effect, if any, will this have on Ebony's Keogh

  What was the rationale for slavery racism

How was slavery institutionalized in this country i.e. what laws allowed for chattel slavery and dehumanization of Africans. What was the rationale for slavery racism against Africans or economics

  Ethics related legal case involving supply chain

Locate and research an ethics related legal case involving supply chain and logistics.. After reading through the court case, provide a summary to the court case.

  Loss of economic surplus caused by a price ceiling

How does elasticity of supply affect the loss of economic surplus caused by a price ceiling?

  Demand-pull inflation occurs when

Demand-pull inflation occurs when:

  Explore the role of the sociologist

Define sociology. Are we all sociologists to some degree? Explore the role of the sociologist. In your opinion, should they observe society, or should they try to reform it

  How much will be won or lost today

According to the previous year, if in August the exchange rate was 3.30 per Suns Dollars and today is 3.20, how much will be won or lost today?

  About perfect competition

Which of the following is true about perfect competition?

  Prepare recommendation to which machine to install at resort

You manage a resort and are considering installing one of two different vending machines, Soda or Candy. The net cash flow for each machine stays the same for each of the four years that it lasts. Key information about each machine is below. Cash flo..

  Prepare a post-closing trialbalance

Prepare a post-closing trialbalance

Reviews

Write a Review

 

Similar Q& A

  How does transaction affect fedex ratio

How does this transaction affect FedEx's ratio

  What is the unextended due date for the income tax return

What is the unextended due date for the income tax return of a corporation whose fiscal year ends on February 28? What is its extended due date?

  What role does your forecast of future interest rates play

You have $5,000 to invest for the next year and are considering three alternatives: A money market fund with an average maturity of 30 days offering a current annualized yield of 3%. A one-year savings deposit at a bank offering an interest rate of 4..

  Miller engine research is expanding its research and

miller engine research is expanding its research and production capacity to introduce a new line of fuel technology for

  Planning to construct expanded facilities

Dean manufacturing is planning to construct expanded facilities and will finance a portion of its new plant with proceeds from the sale of its current plant.

  Taxable income of the two owners

Pam owns a sole proprietorship and Kevin is the sole shareholder of a C (regular) corporation. Each business sustained a $16,000 operating loss and a $2,500 capital loss for the year. Evaluate how these losses will affect the taxable income of the..

  Wright corporation began its operations on september 1 of

wright corporation began its operations on september 1 of the current year. budgeted sales for the first three months

  A companys payroll runs 2800 every two weeks 200 per day

a companys payroll runs 2800 every two weeks 200 per day the last pay day was friday december 19th and the next pay day

  The katie corporation has budgeted fixed costs of 125000

the katie corporation has budgeted fixed costs of 125000 and an estimated selling price of 16.50 per unit. the

  Direct labor budget for next two months

Deviney Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.86 direct labor-hours. The direct labor rate is $8.20 per direct labor-hour.

  You are the auditor of glaxoa corporation glaxoa for the

you are the auditor of glaxoa corporation glaxoa for the current year.nbsp for each situation1.nbspnbspnbspnbsp

  The management of dewitz corporation is considering a

the management of dewitz corporation is considering a project that would require an initial investment of 72000. no

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd