BFIN 141 Chapter Notes - Chapter 6: Consignee, Consignor, Inventory Turnover
Document Summary
Consignor: an owner of inventory goods who ships them to another party who will then nd a buyer and sell the goods for the owner. The consignor retains title to the goods while they are held o site by the consignee. Consignee: one who receives and holds goods owned by another party for the purpose of acting as an agent and selling the goods for the owner. The consignee gets paid a fee from the consignor for nding a buyer. Consistency principle: the accounting requirement that a company use the accounting policies period after period so that the nancial statements of succeeding periods will be comparable. Gross pro t ratio (gross margin ratio): measures how much of net sales is gross pro t (net sales - cost of goods sold); calculated as gross pro t divided by net sales. Net realizable value (nrv): the expected sales price of an item minus the cost of making the sale.
