Modified book value is one of the several valuation methods used by analysts and investors to assign a value to a company. The modified book value method works by adjusting the net worth of a company’s assets and liabilities to obtain theirfair market value. For example, the market value o...
When it comes to accounting, explain the difference between LIFO and FIFO. What is the difference between LIFO and FIFO in accounting? Explain the FIFO and LIFO inventory cost flow methods. How do you compute each? What are the LIFO, FIFO, and ...
Instead of using a spreadsheet or pen and paper, we would always advise business owners to compute average inventory using a dependable inventory management program. The calculation of average inventory can be made extremely simple, automatic, and less prone to errors with the use of inventory mana...
LIFO values the cost of goods sold higher than the inventory on the books. This results in lower net income and higher asset value on the balance sheet. FIFO assumes the most recent inventory purchased is the last to be sold. In periods of rising costs, FIFO values the ...
(back-end compute servers). The performance improvement is driven by the parallelism of the distributed computation, and also by the fact that extremely expensive data-moving costs are avoided. We simply move the computation to the place where the data is stored. Of course, each leaf node ...
Explain why it is stated that LIFO usually produces a lower gross profit than FIFO. Explain how a company could report high profit but very low cash flows in one financial year. Explain why there is a cost of retained earnings. Explain dividend pay-out ratio. Compute for the company's pay...
First in, first out (FIFO) You can use one of three methods to calculate process costs: Weighted average costs The weighted average method is the simplest and most frequently used. Companies add all actual production costs for the period and divide by the number of units completed, plus the...
Learn how to find beginning inventory, get the beginning inventory formula, walk through an example, and more.
Discuss how inventory should be used by the manager to maximize profit. How does LIFO affect income if prices increase, decrease, or remain the same? How about for FIFO? How will relating product contribution margins to the amount of the constrained resource they...
When computing your capital gains, the short-term gains and losses are first netted, and then long-term gains and losses are netted. You can then net the two results together to compute your overall result. Be careful to avoid the wash-sale rule, which could disallow a loss if you bought...