Indicate whether each of the following items is associated with
(a) Allocating the cost of inventories in accordance with the accrual accounting,
(b) Assessing the impact of inventory decisions,
(c) Evaluating the level of inventory,
(d) Engaging in an unethical action.
1. Application of the just-in-time operating environment.
2. Determining the effects of inventory methods on income taxes.
3. Computing inventory turnover.
4. Valuing inventory at an amount to meet management’s targeted net income.
5. Determining the effects of inventory decisions on cash flows.
6. Apportioning the cost of goods available for sale to ending inventory and cost of goods sold.
7. Determining the assumption about the flow of costs into and out of the company.