In The---------- Method of Inventory Valuation, Inventory Cost Is Determined

question 95

Short Answer

In the---------- method of inventory valuation, inventory cost is determined by multiplying the number of units in inventory by a unit cost, which is calculated by dividing the cost of goods available for sale by the units of merchandise available for sale.

---

Definitions:

Price Reduction

The act of lowering the selling price of goods or services, often to stimulate demand, clear out inventory, or respond to market competition.

Target Costing

A pricing method that involves determining the desired cost for a product to ensure profitability at its anticipated selling price.

Desired Return

The profit or return that an investor or company aims to achieve on an investment or project.

Investment

The dedication of assets to achieve an increase in value over time, including purchases of securities, real estate, and other items with the expectation of generating future income or profit.