Question

name items which are recorded at the invoice price in the consignment account. Give reasons for consigning the goods at the invoice price.

Answer 1

Invoice price consigning items aims to achieve the following goal: Cost effective pricing with bonus of cost for storage and transport or handling on the immediate purchaser or the end-user. Maximizing the profit with the new sale price for old stock and thereby have a fresh inventory in the seller's warehouse which normally fetch or attract customers in general.