ACCT1101 Lecture Notes - Lecture 9: European Cooperation In Science And Technology, Net Income, Financial Statement
Document Summary
Specific identification involves the identification of the actual units of inventory purchased and sold. Makes sense for high value inventory with unique identifiers, e. g. luxury cars or jewellery. Time consuming and costly where inventory consists of many small value units: first in first out (fifo, assumes that the oldest units of inventory are sold first. Again many situations where this assumption maps to the physical flow of inventory e. g. oil, grain: last in first out (lifo, assumes the most recently purchased inventory is sold first. Lifo is permitted in the u. s. under certain circumstances but is not permitted for use in australia. Sue(cid:859)s b(cid:396)ollies sells o(cid:374)e t(cid:455)pe of (cid:271)ea(cid:272)h u(cid:373)(cid:271)(cid:396)ellas to gold coast tou(cid:396)ists. Income statement for the year ended 30 june 2013. 22,870: we can use some simple ratios to help with evaluation of business operating performance, we look at 2 ratios, profit margin, gross profit percentage. = 8. 91% (multiply by 100 to get to %)
