In each accounting period, a manager can select the inventory costing method that yields the highest net income.
Answer the following statement true (T) or false (F)
False
Because switching would make it difficult to compare financial results across periods, accounting rules discourage it. A change in method is allowed only if it improves the accuracy of the company's financial results.
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Operating capability refers to
A) the ability of a company to adapt to unexpected needs and opportunities. B) the uncertainty or unpredictability of the future results of a company. C) a measure of overall company performance. D) a company's ability to maintain a given level of operations.
Which of the following is usually NOT a reason why warehouses are used as intermediate storage facilities?
a. An imbalance always exists between the quantity of goods produced and the demand for these goods. b. Warehouses enable companies to regulate the rate of flow of goods between production and consumption points. c. Warehouses enable businesses to take advantage of volume discounts in procurement of raw materials. d. Warehouses comply with regulations governing maintenance of minimum inventories.
Alimony received is included as a gross income item
Indicate whether the statement is true or false.
A route sheet is ______.
a. also known as a gozinto sheet b. a document that describes the sequence of different operations, places, or people involved in a process c. used to identify points of cost intersection d. used to show the materials used in a production process