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

Consigning goods at invoice price aims to achieve the following merchandising objectives: 

1. Increase turnover 
2. Push old stocks 
3. Clear old inventory for new ones 
4. Promote another goods (tie up with consigned goods), and 
5. Save storage space (producer/distributor pass storage/handling cost to wholesaler/retailer)