- Shuffle
Toggle OnToggle Off
- Alphabetize
Toggle OnToggle Off
- Front First
Toggle OnToggle Off
- Both Sides
Toggle OnToggle Off
Front
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
PLAY BUTTON
PLAY BUTTON
11 Cards in this Set
- Front
- Back
|
Give an example where the specific ID cost formula would be used.
|
Used when items are not interchangeable - example would be cars at dealership as we care about the cost of each item; they are all different. We must use this formula, if possible.
|
|
Give an example where the FIFO cost formula would be used.
|
Example is oil in a pipeline; the first oil in to the pipeline is the first out.
|
|
Give an example where the weighted average cost formula would be used.
|
Used when goods ARE interchangeable. Example would be if we purchased 3 boxes of nails of 100 each @ .05, .10 & .25.
|
|
What is the purpose of cost formulas and how do we determine which one we will use?
|
To figure out EI and/or COGS for each item using the COGS model as we purchased each item at a different cost and now need to figure out the cost for each item and how it was allocated. We determine which method based on the physical flow of goods (ex: filling gas tank when it is only 1/2 empty used weighted average).
|
|
What is the calculation for gross margin (profit)?
|
Sales revenue - COGS
|
|
What is the calculation for finding ending inventory?
|
Beginning Inventory + net purchases to find COGAS. Then deduct COGS from COGAS.
|
|
How do we calculate COGS?
|
Beginning inventory + purchases to find COGAS. Then deduct EI.
|
|
Name and describe the 2 types of factoring.
|
Without recourse which is when the financial institution takes on more risk by not having collateral from store (if we don't pay, fin. inst. is out, store doesn't have to pay for it)
With recourse is when the fin. inst. does have a collateraln agreement with the store so if we don't pay they still get paid (store will pay). |
|
Give an example of factoring.
|
The Brick sells us a fridge on account. We make pmts for the fridge, but we are paying HSBC, not The Brick as The Brick sold our acct to HSBC (factored it out).
|
|
What are the details of a cash to cash cycle?
|
Product on shelves --> Sell those products to customers on acct --> Customers pay on acct and we purchase more inventory using those funds.
|
|
Name and describe the 2 shipping terms using goods in transit.
|
FOB (free on board) shipping point which is when inventory is ours as soon as it is shipped.
FOB destination which is when inventory is not actually ours until we physically have it. |
