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Inventory Costing and Intangible Assets
In this module we are continuing the study of inventory costing systems and add other long-term assets, natural resources and intangible assets classified in the balance sheet.
What is the implication of using various inventory costing systems such as FIFO, LIFO, WA, LCM, etc...why a company may use one method over the other? Please check the Internet or ESC Library to find out what companies are using and if they indicated inventory method in their annual report or footnotes? attached to the annual or quarterly report [do not forget to cite your SOURCE!]. Do you prefer the use of one method over the others? Why? For what purpose or is that in general?
Have you heard of JIT Just-In-Time and ABC Activity-Based Costing? Please share your knowledge with us providing any sources you used.
What is the difference between Tangible and Intangible Assets? Why do we care to make such differentiation? Are both depreciable? What is the purpose of depreciation anyway? Are there different name to allocate cost of an asset when it comes to intangible versus tangible asset?
What is the distinction between capital expenditure and revenue expenditure?
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