Which method of inventory valuation is being described?Characteristic FIFO LIFO-新东方在线职业题库

Which method of inventory valuation is being described?

Characteristic FIFO LIFO AVCO

Potentially out of date valuation on issues.

The valuation of inventory rarely reflects the actual

purchase price of the material.

Potentially out of date closing inventory valuation.

This inventory valuation method is particularly suited

to inventory that consist of liquid materials e.g. oil.

This inventory valuation method is particularly suited

to inventory that has a short shelf life e.g. dairy products.

This inventory valuation method is suited to a wheat farmer

who has large silos of grain. Grain is added to and taken from

the top of these silos.

In times of rising prices this method will give higher profits.

In times of rising prices this method will give lower profits.

In times of rising prices this method gives a middle level of

profits compared to the other two.

Issues are valued at the most recent purchase cost.

Inventory is valued at the average of the cost of purchases.

Inventory is valued at the most recent purchase cost.

Chapter6Accountingformaterials

Characteristic FIFO LIFO AVCO

Potentially out of date valuation on issues. 对

The valuation of inventory rarely reflects the actual 对

purchase price of the material.

Potentially out of date closing in ventory valuation. 对

This inventory valuation method is particularly suited 对

to inventory that consist of liquid materials e.g. oil.

This inventory valuation method is particularly suited 对

to inventory that has a short shelf life e.g. dairy products.

This inventory valuation method is suited to a wheat farmer 对

who has large silos of grain. Grain is added to and taken from

the top of these silos.

In times of rising prices this method will give higher profits. 对

In times of rising prices this method will give lower profits. 对

In times of rising prices this method gives a middle level of 对

profits compared to the other two.

Issues are valued at the most recent purchase cost. 对

Inventory is valued at the average of the cost of purchases. 对

Inventory is valued at the most recent purchase cost. 对

多做几道

What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.