Term
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Definition
| Items held for sale in the ordinary course of business |
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Term
| What are the 4 key accounting issues with Inventory? |
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Definition
● What costs to capitalize when inventory is acquired?
● Which method of inventory control?
● Which cost flow assumption?
● Conservatism and the lower-of-cost-or-market rule |
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Term
| 4 steps in the inventory process |
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Definition
Acquire
Control
Sell
Ending Inventory |
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Term
| The two steps of determining the amount of the capitalized cost of inventory |
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Definition
o The number of items or units that belong in inventory
o The costs attached to each item of inventory |
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Term
| When should items be listed in a company's inventory |
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Definition
| If they are being held for sale and the company has complete and unrestricted ownership of them |
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