When a Customer Orders an Item That Is a Completely

question 59

Short Answer

When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order.

Calculate cost of goods sold and ending inventory using different inventory costing methods.

Identify the impacts of choosing different inventory valuation methods on financial statements.

Understand and calculate the effects of inventory transactions on the cost per unit using the moving average method.

Identify and analyze the advantages and disadvantages of LIFO and FIFO inventory methods.

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Definitions:

Inventory Accounting Systems

Methods used by companies to keep track of their inventory levels, costs, and value, including systems like FIFO, LIFO, and weighted average.

Inventory Valuation

The method or process of calculating the cost/value of inventory that a business holds at any given time, which affects cost of goods sold and profitability.

Merchandising Company

A business entity that purchases finished goods and resells them to consumers to earn a profit without altering the physical form of the goods.

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.