The inventory has to be recorded separately to each item and this will generally result in the lowest inventory amount.
<u>Explanation:</u>
LCM- the Lower of Cost which is also called as Market rule is the theory for valuating the inventory in accounting. According to the LCM rule, in a business the cost of inventory must be recorded at lower cost (it can be either the current market price or the original cost)
Reason for recording at lower cost:
Aggregating the items results in the incorporation of some items at amounts greater than LCM.
Example:
If product X (cost = 2 dollars, market = 1 dollar) and product Y (cost = 3 dollars, market = 4 dollars) are aggregated for LCM, the inventory measurement will be 5 dollars. If the rule is applied separately to both the products, the LCM measurement will be 4 dollars.
Answer:
Explanation:
Competitive advantages are those factor that put a manufacturer in a better position over rivals in the market and gives her the benefit of higher pricing and brand loyalty.
In this scenario , the competitive advantage that Heartsong has in the industry is her world wide reputation as a provider of choice for high-quality leading -edge artificial heart valves.
However, she has fund limitation to enhance research and development , larger production and maintain additional inventory as demanded by the market . The sales on account pattern as vendors are not paid immediately and short lead time for ordering due to the nature of the heart valve was not helping the situation.
The outsourcing arrangement to Edfex will ease the stress on delivery as it has hightech warehouses in most major population centers around the country. The focus will now be on research and development and increased production capacity.
A career is a job that you go to for most of your life. Most careers require you to go to school for them. A career is a specialized activity that you are trained to do. Not something that you learn in a couple of minutes. For example working at McDonald’s is not a career but a doctor is. (I gave you some so you can fill in based on what I said :) )
Hello, The first step of financial planning process is to define specific goals. Since this is the first step I figured it is the most important.
Hope this helps..
