Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 07 Jan 2018 My Price 4.00

Inventory valuation

                  7. Why is the method of valuing inventory important?

(a)     Inventory valuation is based on the actual flow of goods.

(b)     Inventories always account for more than 50% of total assets

and therefore have a considerable impact on a company’s financial position.

(c)     Companies desire to use the inventory valuation method that mini- mizes the cost of goods sold expense.

(d)     The inventory valuation method chosen determines the value of inventory on the balance sheet and the cost of goods sold expense on the income statement, two items having considerable impact on the financial position of a company.

Answers

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Status NEW Posted 07 Jan 2018 10:01 PM My Price 4.00

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