Business, 09.10.2019 00:30, BluSeaa

Hiller company uses the fifo method of inventory costing because it wants to maintain a high current ratio during periods of

Answers: 1

Show answers

Answers

The Hiller company uses the FIFO method of inventory costing because it wants to maintain a high current ratio during periods of inventory valuation. The FIFO method means first in, first out method which assumes that the first product that was purchased are also the first ones to be sold.

answered: jeny89

Hiller Company uses the FIFO method of inventory costing because it wants to maintain a high current ratio during periods of Inflation.

FIFO means first in, first out, it is a technique that is used by companies to manage inventory and financial issues. FIFO is a valuation method in which materials or assets that a firm procured first are used, sold or are first disposed of.

Further Explanation

This method can be used for tax purposes, the evaluation method (FIFO) assumes that items that are acquired first are contained in the firm’s income statement cost of goods sold.

FIFO method can be used for many purposes and it has numerous benefits.

Some of the advantages of FIFO include:

FIFO method can be applied easilyThe valuation method can be used for cost flow assumption and it always matches the physical flow of goodsIncome can't be manipulatedThe amount on the balance sheet for inventory may likely be equal to the current market value

The main idea behind FIFO is to avoid obsolescence; a firm disposes the oldest asset first and retains the assets that are still new in inventory.

Therefore, Hiller Company uses the FIFO method of inventory costing because it wants to maintain a high current ratio during periods of Inflation.

LEARN MORE:

Hiller Company uses the FIFO method of inventory costing because it wants to maintain a high current ratio during periods of Hiller company uses the fifo method of inventory costing because it wants to maintain a high current ratio during periods of

KEYWORDS:

fifoevaluation methodoldest assetinventoryinflation

answered: Guest

Can you take a photo so i can see the table

answered: Guest

answer/// the grapefruit that guarantees you will loss five pounds a week;

Other questions on the subject: Business

Business, 22.06.2019 00:10, wolfycatsz74

Which of the following is a problem for the production of public goods?

Answers: 2

continue

Business, 22.06.2019 10:30, jeieiejej

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. its ending equity is

Answers: 2

continue

Business, 22.06.2019 21:40, koryn4880

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.

Answers: 3

continue

Business, 22.06.2019 23:00, dededese2403

Which of the following represents an unlimited queue? a. toll booth serving automobiles on the interstateb. drive through lane at a fast food restaurantc. faculty office with limited seating during office hoursd. restaurant with no outside seating and limited capacity due to fire departments restrictionse. small barbershop with only 5 chairs for waiting customers

Answers: 3

continue

Do you know the correct answer?

Hiller company uses the fifo method of inventory costing because it wants to maintain a high current...