F7: Inventory

Question 1

What’s “bill and hold” transaction?

Answer 1

Customer agrees to purchase the goods, but the seller retains physical possession till the customer requests shipment to designated locations

Question 2

What’s dollar value LIFO?

Answer 2

Inventory is measured in $ (not unit) and is adjusted for changing price level

Question 3

Formula of price index in dollar value LIFO

Answer 3

E.I @ Current Year / EI @ Base Year