Answered: Identify which of the statements below…

Name: Identify which of the statements below are true (T) or false (F). Lean
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce inventory levels

Business

Accounting

Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce inventory levels

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 8DQ: A high inventory turnover ratio provides evidence that a company is having problems with stockouts...

See similar textbooks

Related questions

Q: State whether the following statements are true with reasons: Safety stock increases as demand…

A: Business needs various type of material in its stock. For every order, some costs needs to be…

Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

Q: The level of inventory a company maintains has important economic consequences, and it involves…

A: Ending inventory refers to the inventory which is left at the end of the accounting period. This…

Q: In what ways would a reduction in inventory help the company

A: Inventory refers to all the items, goods, merchandise, and materials held by a business for selling…

Q: Which of the following is an advantage of the periodic inventory system?A. frequent physical…

A: When a physical inventory count is performed, a periodic inventory system just updates the ending…

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: The net realizable value of Lake Corporation’s inventory has declined below its cost. Allyn Conan,…

A: a. The ethical issue involved in the situation is, use of cost-of-goods-sold method to write down…

Q: Evaluate different types of risk and costs if the financial director proposed to reduce inventory.…

A: The current ratio is computed by dividing current assets by current liabilities. The acid test ratio…

Q: The number of units that a company should add to inventory with each order to minimize the total…

Q: Which of the following might be attributed to efficient inventory management? Select the correct…

A: All of the choices given

Q: The ability to lower overall inventory warehousing costs is an advantage of which type of system…

Q: Identify the following as applying more to lean (L) or to traditional (T) businesses. Inventory…

Q: Assuming that the price the company pays for inventory is increasing, which method will:

A: The appropriate answer is shown below

Q: Zimt AG uses the FIFO method, and Nutmeg Inc. uses the LIFO method. Compared tothe cost of replacing…

A: If a company follows FIFO method, then the inventory will go based on first in first out. If a…

Q: 1. Inventory management aims at a. increase customer service levels b. All of the above c.…

A: Inventory management refers to the process of ordering, storing and using a company's inventory.

Q: Which of the following is an advantage of the periodic inventory system? Group of answer choices…

A: The periodic inventory system is a method of inventory valuation, where inventory is valued at the…

Q: Which of the following methods is appropriate for a business whose inventory consists of a…

A: Inventory valuation methods are different methods used to allocate the value to the inventory. They…

Q: Which of the following is an advantage of the periodic inventory system? frequent physical inventory…

A: Periodic inventory system is a system in which cost of goods sold is determined at year end. Value…

Q: 1. Inventory management is the formulation and administration of plans and policies to efficiently…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: Samsung Electronics reports the following regarding its accounting for inventories. Inventories are…

Q: b order to attract investors and borrow on attractive terms, a company would use in times when…

A: When the cost of inventory is raising, the cost of holding old stock will get higher. The inventory…

Q: Ward Hardware does not expect costs to change dramatically and wants to use an inventory costing…

A: Perpetual Inventory System is an accounting system of valuing the inventory where there is a need…

Q: Are you correct that, by using LIFO, Kroger reports lower inventory and lowerprofits? Why would…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: Which company would likely have the highest inventory turnover ratio? grocery store O electronics…

A: Inventory turnover ratio = Cost of goods sold / Average inventory Higher the volume of sales, higher…

Q: If merchandise inventory is being valued at cost and the purchase price is steadily falling, which…

A: Inventory can be valued using many ways such as : FIFO LIFO Weighted Average Average cost

Q: How should accounting be able to catch up with the high sales return rates, particularly on…

A: Inventory management: Inventory management can be defined as a system to measure and record the…

Q: a. Why is a high inventory turnover considered to be a positive indicator?b. Is it possible to have…

A: a.Inventory turnover shows the company’s ability to sell its inventory, it is shown in terms of…

Q: A business uses a perpetual inventory system. During periods of rising prices, cost of goods sold…

A: In FIFO the earliest goods ( beginning) will be sold first.

Q: When inventory costs rise and inventory quantities are not decreasing, what does the LIFO produces?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: If the ending inventory of a firm is overstated by $56,000, by how much and in what direction…

A: The answer is as fallows

Q: net realisable value of inventory would ______ cost.

A: Net Realizable value is the value received upon selling the asset less estimated cost to sell the…

Q: Explain why some management accountants believe that absorption costing may provide an incentive for…

A: Absorption costing Absorption costing is an accounting method which helps in computing the total…

Q: Which of the following statements about the margin of safety is (are) correct? a. producing units…

A: Margin of safety is difference between actual sales and break even sales. Sales of more units…

Q: In order to get the lowest profits possible in periods of rising inventory costs, the company should…

A: Inventory costing is an accounting concept that has direct consequence on company’s gross profit and…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce inventory levels

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is a disadvantage of the perpetual inventory system? A. Inventory information is in real-time. B. Inventory is automatically updated. C. It allows managers to make current decisions about purchases, stock, and sales. D. It is cost-prohibitive.
A high inventory turnover ratio provides evidence that a company is having problems with stockouts and disgruntled customers. Do you agree? Explain.
Which of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managers
Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for inventory. However, under JIT, inventory- related costs are reduced by ordering frequently and in small quantities. Can you explain why both of these statements are correct? Explain why some organisations onsider it important to measure customer retention and customer satisfaction.
During a period of rising inventory costs and stable output prices, describe how net income and total assets would differ depending upon whether LIFO or FIFO is applied. Explain how your answer would change if the company is experiencing declining inventory costs and stable output prices.
Like many technology companies, TechnoTools operates in an environment of decliningprices. Its reported profits will tend to be highest if it accounts for inventory using the:A. FIFO method.B. LIFO method.C. weighted average cost method.
“Managers should always buy inventory in quantities that result in the lowest purchase cost per unit.” Do you agree? Why?
which of the following is considered a signal of success for a manufacturing company? A) A low quick ratio B) A high inventory turnover ratio C) A high current ratio D) Low quality costs
Comment on the company with the shorter Days Inventory Outstanding. Should they maintain this efficiency, or should they slow down? Give advantages and disadvantages for both scenarios.
Why is the level of and movement in the operating expense percentage an important indicator of financial risk? which answer is it below? a. It provides important insight into management integrity b It is an indicator of production efficiency. c. It reveals the success of the business's Inventory procurement strategies d. It is a measure of expense management, exclusive of production and financing costs. .
In a Lean Culture How can a reduction in delays in one part of a process happen without negatively impacting another part?What are some reasons for erring on the side of having too much inventory rather than too little?
The managers of a profit-seeking organisation would always hope that the net realisable value of inventory would ______ cost. Select one alternative: be above match the remain below be included in the