Chapter 6 inventory turnover L3

Chapter 6 inventory turnover L3 - Chapter6 Lecture3

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Chapter 6 Lecture 3 Inventory Turnover and Final Remarks In Chapter 6 we have looked at the basic characteristics of the most common  inventory systems.  Stress on the word basic.  As you continue with your  accounting education to the intermediate level you will study inventory valuation  in greater depth. AS those of you in field already know, there can be some  differences between textbook accounting and real world. In practice, business  often modifies these systems to fit their particular needs.  Additionally, large  business will use several different methods depending on the products they  manufacture or sell.  For example, if you pick up Boeing Annual report you will  see in their notes that they use three methods, FIFO, weighted average, and  specific ID.  Different inventory systems for different purposes.  Inventory Turnover Rate. The Inventory turnover rate indicates how many times in the course of one year 
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Chapter 6 inventory turnover L3 - Chapter6 Lecture3

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