Provide an Appropriate Response

question 60

Essay

Provide an appropriate response. A common goal of quality control is to reduce variation in a product or service. List and describe the two types of variability. Give an example of each.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated either by a physical count or accounting estimation methods.

Perpetual Inventory System

An accounting system that continuously updates inventory records for each purchase and sale.

Inventory On September 30

The stock of goods a company has available for sale or used in production as recorded on September 30th.

Inventory Cost Flow Assumptions

Accounting methods assumed about how costs flow through inventory; basic types include FIFO, LIFO, and weighted average.