How is the inventory turnover ratio computed

Reference no: EM132091227

Question: 1. Explain briefly the application of the LCM rule to ending inventory. Describe its effect on the balance sheet and income statement when market is lower than cost.

2. Explain why an error in ending inventory in one period affects the following period.

3. How is the inventory turnover ratio computed?

4. Distinguish perpetual inventory systems from periodic inventory systems by describing when and how cost of goods sold is calculated.

Reference no: EM132091227

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