IFRS vs GAAP: Concerns about LIFO General accepted accounting principles (GAAP) allows the use of LIFO (Last-in First-out) under ASC 330-10-30-9 to determine inventory costs. However, IFRS (International Financial Reporting Standards) does not allow the use. Many companies choose to use the LIFO method because it allows the higher value inventory to be included into the cost of sales. This results in a smaller profit margin that further results in less tax. IFRS doesn’t allow the use of LIFO for the
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are processed and fast foods; 50% changes in the course of a year due to seasonal demand & new products; local preferences are important and vary; different consumption patterns throughout the day; stores have limited shelf space and little buffer inventory (limited store size). 7-eleven supply uncertainty is medium to high. Supply uncertainty is increased due to: high diversity of products, perishable products (e.g. frozen and dairy products), the rate of innovative/number of new products, possible
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INFORMS is located in Maryland, USA Operations Research Publication details, including instructions for authors and subscription information: http://pubsonline.informs.org Inventory Management of a Fast-Fashion Retail Network Felipe Caro, Jérémie Gallien, To cite this article: Felipe Caro, Jérémie Gallien, (2010) Inventory Management of a Fast-Fashion Retail Network. Operations Research 58(2):257-273. http://dx.doi.org/10.1287/opre.1090.0698 Full terms and conditions of use: http://pubsonline
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Week: 4 Individual Paper - P2-6B and P13-2B ACC / 300 Week:4 Individual Paper - P2-6B and P13-2B Week 4 (Problem P2-6B) (A.)Earnings per share 2012 2011 $150,000 $163,000 370,000 shares 320,000 shares =0.405 =0.509375 =$.41 =$.51 (B.)Working capital 2012 2011 $40,000 $24,000 $90,000 $55,000 $74,000 $73,000 $168,000 $152,000 - $88,000 - $65
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Chapter 4 Exercise 4-3 a. Describe inventory cost flow assumption of (1) average cost, (2) FIFO, (3) LIF0. Average cost: units sold without regard to the order in which they are purchased and computes COGS and ending inventories as simple weighted average. FIFO: the first units purchased are the first units sold. These units are the units on hand at the beginning of the period. LIFO: the last units purchased are the first to be sold. b. Discuss management’s usual reason for using LIFO as inflationary
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2010): 1. Apex Tannery 2. Monno Ceramic 3. Bata Shoe 4. Meghna Cement & 5. Fu-wang Food We have calculated the following ratios for the each of the companies for both years: 1. Current ratio 2. Quick ratio 3. Inventory turnover ratio 4. Long term debt ratio 5. Debt to total asset ratio 6. Total asset turnover 7. Times interest earned ratio We have found the average value of each of the ratios for the organizations. We made intercompany comparison
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new centralized logistics group. After a decade of experience imple menting MRP (Materials Requirements Planning) systems throughout the company's manufacturing facilities, Lemming was confident he could handle the job. Until this morning. "Our inventory levels are ridiculous!" barked Jean Du Blanc, the company's Chief Financial Officer. "Our customer service is the worst in the industry, and getting worse," grumbled Kirk Callow, the CEO. Lemming started to explain, "You see, I've already set up
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annual business range is less that 1 million. The custom division produces products for large business customers and its essential that they hold stock in the inventory throughout the year to cater the needs of the customers. From the case its also mentioned that Steelworks Inc. have been spending more money on the stocks in the inventory. The products produced by the company are Durabend R10- Specialty Durabend R12- Specialty Durabend R15- Specialty Duraflex R10- Custom Duraflex R12-Custom
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CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-1 The budgeting cycle includes the following elements: a. Planning the performance of the company as a whole as well as planning the performance of its subunits. Management agrees on what is expected. b. Providing a frame of reference, a set of specific expectations against which actual results can be compared. c. Investigating variations from plans. If necessary, corrective action follows investigation. d. Planning again, in light of
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approach. Question 2 (5 marks) Lismore Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes
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