Different inventory cost flow assumptions

ACC/290 Principles of Accounting I


Don't use plagiarized sources. Get Your Custom Essay on
Different inventory cost flow assumptions
Just from $9/Page
Order Essay

(8 questions 100 word answers)



1. What are the three different inventory cost flow assumptions commonly used in commerce today and allowed by generally accepted accounting principles? Pick one and describe in detail how it works.  How does your company, or a company you are familiar with, determine what cost flow assumption it should use?


2. How do the three inventory cost flow assumptions compare when reporting profit in the income statement and inventory on the balance sheet in a period of rising prices?


3. Describe the lower of cost or market inventory valuation method and why it is used.  How does this follow the convention in conservatism in accounting?



4. In your own words describe the inventory turnover ratio and days in inventory calculation.  Why are these calculations important to merchandising companies?



5. What is the primary basis of accounting for inventories?



6. What is the major advantage and major disadvantage of the specific identification method of inventory costing?



7. Why is it inappropriate for a company to include freight‐out expense in the Cost of Goods Sold account?



8. How does the average‐cost method of inventory costing differ between a perpetual inventory system and a periodic inventory system?


Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Open chat
You can contact our live agent via WhatsApp! Via +1 817 953 0426

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code STARS