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5. Does the firm provide goods or services?

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    Wendy C.
    AU
    Wendy C.

    A firm trading in goods usually requires more capital than one providing services.

    Samuel F.
    ZA
    Samuel F.

    Should inventories be reported at their cost or at their selling prices?

    Harrison A.
    AT
    Harrison A.

    whether a firm provides goods or services the primary aim is to maximize profit and minimize loss.therefore,would employ every stratagy and policy that will enable it attain its objectives . Goods or services are provided for customers and from this fact we got to know that customers satisfaction is the live spring of every business.

    Harrison A.
    AT
    Harrison A.

    without customers would their be business ?

    Diamond T.
    US
    Diamond T.

    Should inventories be reported at their cost or at their selling prices?

    Douglas R.
    US
    Douglas R.

    Stock disposal needs to be check by the minute in order not to loose money.

    Erick V.
    PE
    Erick V.

    Obviamente la firma de bienes requiere un a mayor inversión que una empresas de servicios

    Tony I.
    NG
    Tony I.

    Are you referring to the needed capital here?

    Pride C.
    ZW
    Pride C.

    The general answer is that inventories should be reported at cost. A merchant's inventory would be reported at the merchant's cost to purchase the items. A manufacturer's inventory would be at its cost to produce the items (the cost of direct materials, direct labor, and manufacturing overhead). The conservatism principle requires that an amount less than cost be used when the replacement cost is less than the original cost. When this is the case, the selling price minus the cost to complete and dispose might be the amount to be reported. (The selling price minus the cost to complete and dispose is the net realizable value.) In a few industries, such as gold mining and meatpacking, it is accepted practice to report the inventory at its net realizable value

    Jack H.
    US
    Jack H.

    Goods are hardware and services are software do you agree ?

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