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Q. Inventories and revenue recognition?
Management make a decision which inventory costing method or methods (LIFO, FIFO, and so on.) to use. As well, management should determine which method is the most meaningful and useful in representing economic results. Then it should use the selected method consistently.
The principal business of Kellwood Company is the merchandising, marketing and manufacturing of apparel primarily for women. Note in the following annotation from Kellwood's financial statements that it like other companies uses several costing methods within the same enterprise.
Inventories are stated at the lower of cost or else market. The first-in first-out (FIFO) method is utilized to determine the value of 46 per cent of the domestic inventories as well as the last-in first-out (LIFO) method is used to value the remaining domestic inventories. Inventories of foreign subsidiaries are valued utilizing the specific identification method. Sales are acknowledged when goods are shipped." In general companies use the inventory method that best fits their individual circumstances.
Ask queMary Lapointe, the Chief Financial Officer of your Northern Travel Experience company, has advised that the company will be opening an office in Nunavut this year. The offic
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Question 1: Briefly explain the following costs terms: Variable costs and fixed costs Semi- variable costs and semi-fixed costs Past costs and future costs.
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