1. TASK: Insert the appropriate word in the text below:
аssumptions – compromise – in bulk – abelled – purchase – time consuming
There are many different methods of arriving at the value of inventories consumed or closing inventories. The most accurate but __________ method is for each item to be __________ with its cost and when it is sold, the cost notified to the accounts department.
However, this is not practical in most organizations, especially where inventories are bought __________ , and where no distinction is made between old inventories and new inventories. Therefore inventories must be valued using certain __________.
When valuing inventory items, there is always the problem as to whether the original __________ price or the immediate current price should be used. The dilemma has led to a number of methods of inventory valuation, all aimed at some form of __________. There are following methods are used for inventory valuation:
- Last in first out (LIFO)
- First in first out (FIFO)
- Weighted average cost (AVCO) method
- Retail valuation method.
2. CHECK YOUR SPEAKING
|
assumptions |
[ əˈsʌmpʃ(ə)nz ] |
допущення |
|
compromise |
[ ˈkɒmprəmaɪz ] |
компроміс |
|
in bulk |
[ ɪn bʌlk ] |
оптом |
|
labelled |
[ˈleɪbld ] |
маркований |
|
purchase |
[ˈpɜːʧəs ] |
закупівля |
|
time consuming |
[ taɪm kənˈsjuːmɪŋ ] |
трудомісткий |
3. SEE CORRECT ANSWER
There are many different methods of arriving at the value of inventories consumed or closing inventories. The most accurate but time consuming method is for each item to be labelled with its cost and when it is sold, the cost notified to the accounts department.
However, this is not practical in most organizations, especially where inventories are bought in bulk, and where no distinction is made between old inventories and new inventories. Therefore inventories must be valued using certain assumptions.
When valuing inventory items, there is always the problem as to whether the original purchase price or the immediate current price should be used. The dilemma has led to a number of methods of inventory valuation, all aimed at some form of compromise. There are following methods are used for inventory valuation:
- Last in first out (LIFO)
- First in first out (FIFO)
- Weighted average cost (AVCO) method
- Retail valuation method.
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