Examlex
A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x1 − 55x2.
Inventory Valuing
Refers to the practice of assessing and reporting the value of a company's inventory using specific methods like FIFO (First In, First Out) or LIFO (Last In, First Out).
Consignor
The name for the manufacturer in a consigned inventory arrangement.
Consignment
An arrangement in which goods are left in the possession of another party to sell, but the consignor retains ownership until the goods are sold.
Net Realizable Value
The estimated selling price of an asset in the ordinary course of business minus any costs of completion, transportation, and necessary selling expenses.
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