ATURLS

how thev have resolved

Focus: Management theories and concepts come to life a

's Dilemma- Everv chapter opens vÅth a Nlanaoer's Dilemma. Students •ave
and think about what they would do in that situation.
Managers: Chapter openers introduce the managers being featured
sn-les and philosophies.
to Be a -Manager: This feature provides several activities that give
students
£management- Activities range from creating a code of ethics to designitx
Chapter Material: The edition is written more succinctly to support is
taught, but preserves the quality that made the book a
bestseller.
 NiAlgÞY¾ to Remember
unk inventory valuation to gross profit. We link inventory valuation to
gross
'valuation involves allocating the cost of goods available for sale between cost of g
YÏ: bggross profit,Ž sales less cost of goods sold, on the income statement) and
ending inve fbðlance sheet).
Use both perpetual and periodic inventory systems. Under the perpetual i ously
track inventories and cost of goods sold by recording cost of goods sold at the
periodic inventory system,ve compute cost of goods sold using an adjusting entry at
y physical inventory at the end ofeach period under either system. They count the
good frt each item from purchase records. Under the periodic system, the physical
inventor
•$f?idjusting entry to recognize cost ofgoods sold. Under the perpetual system, the
physic the accounting records. Differences, if any, lead to adjustments to cost of
goods sold an
Calculate the cost of merchandise acquired. The cost of merchandise
acqu goods plus directly identifiable inbound transportation costs less any
cash or itreturns or allowanceS.
Compute Income and Inventory values using the four principal invg
,ÇValuation of inventories involves the assignment of specific historical costs of
units remaining in ending inventory. Four major inventory valuation methods
*cific identification, weighted average, FIFO, and LIFO. Specific
identification is products such as automobiles boats, or jewelry
FIFO attributes the