Identify and Briefly Explain Four of the Five Major Purposes

question 30

Essay

Identify and briefly explain four of the five major purposes of management performance.

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Definitions:

Determining Cost of Inventory

Involves valuing the items sold and those remaining in stock by allocating costs based on specific identification, FIFO, LIFO, or weighted average methods.

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be used or sold.

LIFO

Last In, First Out, an inventory valuation method where the last items placed in inventory are the first to be used or sold.

Inventory Control

The supervision of the supply, storage, and accessibility of items in order to ensure an adequate supply without excessive oversupply.