Inventory Concept and Depreciation Methods - Writing
Prior to beginning work on this assignment, review Chapter 9 of your textbook. Additionally, review the What Are the Methods of Depreciation? (Links to an external site.) and the Depreciation and Why it is Important to Your Business (Links to an external site.) articles.Scenario:As a Practice Manager for Dr. Smith and Dr. Brown, you are tasked
with preparing a report that illustrates your knowledge of computing
inventory and depreciation methods. After analyzing Dr. Smith and Dr. Brown’s Financial Statements,
and performing the necessary calculations, you will decide on the
feasibility of purchasing the equipment based on your computations and
analysis of the financial statements. In addition, you will explain the
rationale for your choice and make a recommendation for the practice.Download and complete the Inventory Concept and Depreciation Methods Template.
You will need to ensure that your responses are thorough and written in
your own words; give examples as required and list references in APA
format in the space provided within the template. When completed, the
document will be at least eight pages in length. With that said, the
items below illustrate the required components to be completed. NOTE:
Information to calculate inventory and depreciation is included in the Inventory Concept and Depreciation Methods Template.Part 1: Inventory Concept and Calculations
Discuss the inventory concept
List an example of an inventory item and discuss how the item moves
from inventory to COGS (Costs of Goods Sold). Include information on the
meaning of COGS.
Calculate the cost of ending inventory and COGS using the information provided within the template.
FIFO
LIFO
WEIGHTED-AVERAGE
Part 2: Define the Five Methods for Computing Book Depreciation
Define each of the following methods for computing book depreciation:
Straight Line Depreciation Method
Accelerated Book Depreciation: Sum of Years’ Digits (SYD) Method
Accelerated Book Deprecation: Double Declining Balance (DDB) Method
Accelerated Book Deprecation: 150\% Declining Balance Method
Part 3: Calculating Depreciation
Calculate depreciation for three of the depreciation methods identified in the template.
Example of Straight Line Depreciation Method
Example of Accelerated Book Depreciation: SYD Method
Example of Accelerated Book Deprecation: DDB Method
Part 4: Analysis of Depreciation Methods
Explain which method would be more feasible for healthcare organizations to use
Hospital
Physician practice
Explain why it is important for a healthcare organization or physician practice to use a depreciation method.
Part 5: Recommendation
What is the depreciation method you would recommend to Dr. Smith and
Dr. Brown to purchase the fixed asset? Explain the rationale for your
choice.
Paper Requirements:The Inventory Concept and Depreciation Methods Assignment template, once completed,
Should demonstrate an understanding of the reading assignments,
class discussions, your own research, and the application of new
knowledge.
Must have substantive responses within the template and include
complete sentences in paragraph format, including citations for each
reference listed.
Must use at least one scholarly source from the University Library in addition to the course text.
The Scholarly, Peer Reviewed, and Other Credible Sources (Links to an external site.)
table offers additional guidance on appropriate source types. If you
have questions about whether a specific source is appropriate for this
assignment, please contact your instructor. Your instructor has the
final say about the appropriateness of a specific source for a
particular assignment.
Must cite any information used from sources in APA style
Must utilize academic voice. See the Academic Voice (Links to an external site.) resource for additional guidance.
Must include references within the space provided in the template.
Reference must be formatted according to APA style
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