Why would a company want to estimate its inventory?

The company might physically count inventory only once a year, yet they might need to produce financial statements on a monthly basis

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Inventory is lost in a fire, and the claim for insurance requires the inventory amount lost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

As a test of the accuracy of an actual physical inventory count

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of these

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
All of these

Answer (D): All of these
Explanation: Organizations now and again need to decide the worth of stock when an actual count is incomprehensible or illogical. For instance, an organization might have to realize how much stock was obliterated in a fire.

Suggest Corrections

Similar questions

Q. Current Liabilities of a company are ₹ 6,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory

Why would the inventory turnover ratio be more important when analysing a grocery store than an insurance company?

Q. Which of the following is true for a company which continuous reviews its inventory system?

Q. Opening inventory Rs 12,00,000 ,Purchases Rs 68,00,000 ,Sales Rs 96,00,000. The value of closing inventory as per physical stock was Rs 6,50,000. The company's gross profit on sales has remained constant at 25%. The management of the company suspects that some inventories might have been pilfered by a new employee . What is the estimated cost of missing inventory ?

A company has excess finished goods inventory that it does not expect to realize within the company’s operating cycle of fifteen months. It shall be classified as___

Join BYJU'S Learning Program

Why would a company want to estimate its inventory?

The correct option is D All of theseAnswer (D): All of theseExplanation: Organizations now and again need to decide the worth of stock when an actual count is incomprehensible or illogical. For instance, an organization might have to realize how much stock was obliterated in a fire.

The correct option is D
All of these

Answer (D): All of these
Explanation: Organizations now and again need to decide the worth of stock when an actual count is incomprehensible or illogical. For instance, an organization might have to realize how much stock was obliterated in a fire.