Describe the Information-Processing Model and Outline the Three Long-Held Assumptions

question 64

Essay

Describe the information-processing model and outline the three long-held assumptions it is based upon.

Identify and apply various inventory cost flow assumptions (FIFO, LIFO, Weighted Average).

Calculate cost of goods sold, gross profit, and ending inventory under different cost flow methods.

Analyze the effects of inventory misstatements on financial statements.

Evaluate inventory using the lower of cost or market rule.