Explain why cost of goods sold is sometimes described as a residual amount. Under which type of

Question:

Explain why cost of goods sold is sometimes described as a residual amount. Under which type of inventory system would this description be more accurate?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Understanding Financial Accounting

ISBN: 978-1118849385

1st Canadian Edition

Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald

See More Books

Question Posted: Jun 11, 2015 08:18 AM

See More Questions

Explain why cost of goods sold should be lower if manufacturing overhead is overallocated. Should operating income be higher or lower if manufacturing overhead is overallocated? Why?
Which type of inventory system would you use in the following situations? a. Supplying your kitchen with fresh food. b. Obtaining a daily newspaper. c. Buying gas for your car. To which of these...
Explain why ending inventory and cost of goods sold under the average cost formula are not the same amounts in a periodic inventory system as they are in a perpetual inventory system.
Derive the velocity potential for a doublet; i.e., derive Eq. (3.88).
If property is sold at a loss to a related taxpayer, under what circumstances can at least partial benefit be derived from the disallowed loss?
Ivanhoe Street Inc, makes unfinished bookcases that it sells for $58. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Ivanhoe Street is considering finishing the...
Explain the strategies internationalizing firms use to gain and sustain competitive advantage. LO.1
Boscoe Power Tools manufactures a wide variety of tools and accessories. One of its more popular craft-related items is the cord free glue gun. Use the following information about this product to...
A stock price is currently $50. Over the next six-month period it is expected to go up by 8% or down by 4% . The risk-free interest rate is 4% per annum with continuous compounding. What is the value...
During Year 1, Reforce Company conducted research and development on a new product. By March 31, Year 2, the company had determined the new product was technologically feasible, and the company...
Discuss the advantages and disadvantages of the perpetual inventory system compared with a periodic inventory system.
Explain whether or not the use of a perpetual inventory system eliminates the need for companies to conduct inventory counts.
Would you consider Wikipedia a public good? Does it provide any positive or negative externalities?
Please help! I'm stuck 1) What purpose would your computer system serve? Business or personal or both? 2) Is this laptop/portable or desktop with monitor attached or all-in-one desktop? 3) What would...
The airline industry is severely hit by the COVID-19. Rows 6 to 85 show the daily closing prices of three stocks (i.e.,Qantas Airways Limited (QAN.AX), Singapore Airlines Limited (C6L.SI), and Cathay...
Using C+ Write a program to let users input two integers. If the first number is greater than the second number, print "The first number is larger". If the second number is greater than the first...
7. The normal model Show that if the risk-neutral distribution of ST is given by ST | S ~N (F, (T-t)), where F = F(t, T)istheforwardprice, thenthepriceofa K-strike straddle is approxim- ated by Z(t,...
25 cm 75 cm Water Parabola 2. The wheel-well of a custom truck-mounted water tank has a semi- parabolic shape as shown (assume point A corresponds to the peak). It's width is projected 150 cm into...
The following table presents the number of reports of graffiti in each of New Yorks five boroughs over a one-year period. These reports were classified as being open, closed, or pending. A graffiti...
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
An air compressor of mass $100 \mathrm{~kg}$ is mounted on an elastic foundation. It has been observed that, when a harmonic force of amplitude $100 \mathrm{~N}$ is applied to the compressor, the...
Big Rock Brewery Inc. is a Calgary-based producer of premium, all-natural craft beers and other alcoholic beverages, which are sold in six provinces and two territories in Canada. Exhibit 10.16 is an...
Volta Desalination Ltd. needed to raise $150 million of additional capital to finance the design, development, and construction of its water desalination facility. Volta decided to issue bonds that...
Spring Water Company Ltd. needed to raise $50 million of additional capital to finance the expansion of its bottled water facility. After consulting an investment banker, it decided to issue bonds....
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $537,600, a unit variable cost of $50, and a unit selling...
You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your...
Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000). Ending balances in the...

Explain why cost of goods sold is sometimes described as a residual amount. Under which type of

Question:

Step by Step Answer:

No matter what type of inventory system a company has in place the total of the cost ...View the full answer

Understanding Financial Accounting

Students also viewed these Accounting questions