When a Company Adopts a Just-In-Time Inventory System,it Would Expect

question 34

Multiple Choice

When a company adopts a just-in-time inventory system,it would expect:

• A)higher inventories and fewer units purchased on a given order.
• B)higher inventories and more units purchased on a given order.
• C)lower inventories and fewer units purchased on a given order.
• D)lower inventories and more units purchased on a given order.
• E)lower inventories and less frequent purchases.

Recognize when and how to record entries for investments revalued to fair value.

Understand and apply the principles of accounting for investments and related income in compliance with IFRS standards.

Analyze and prepare journal entries for transactions related to investments, including purchases, revaluations, and sales.

Understand the impact of IFRS 9 on the treatment of realized gains and the prevention of earnings management.

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Definitions:

Inventory Costing

The method of accounting that assigns costs to inventory, typically involving the calculation of costs of goods sold and ending inventory values.

High-Unit Cost

The condition of having a high cost per unit of product, often due to expensive inputs or inefficient production.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or manufactured first are sold or used first.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.