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2001-0177

2001-0177

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Published by Amr Sakka

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Published by: Amr Sakka on Aug 23, 2012
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08/23/2012

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 b a c kn e x th o m e
Thomas H. BeechySchulich School of Business,York UniversityJoan E. D. ConrodFaculty of Management,Dalhousie University
PowerPoint slides by:
Bruce W. MacLean,Bruce W. MacLean,Faculty of Management,Faculty of Management,Dalhousie UniversityDalhousie University
Copyright
1998 McGraw-Hill Ryerson Limited, Canada
Intermediate Accounting
 
 b a c kn e x th o m e
9
Copyright
1998 McGraw-Hill Ryerson Limited, Canada
Chapter 9
InventoriesInventories
 
 b a c kn e x th o m e
9
Copyright
1998 McGraw-Hill Ryerson Limited, Canada
Importance Of Inventories
s
Inventories typically represent the largest current assetof manufacturing and retail firms. Inventory should beconsidered a “high-risk” asset.
s
For many companies, inventories are asignificant portion of total assets as well.
s
Inventory accounting methods and managementpractices can become profit-enhancing tools.
s
Inventory effects on profits are more noticeablewhen business activity fluctuates
s
Topics: Types of inventory, Basic cost flowassumptions,Valuation issues and Estimation methods

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