Question 1

The ______________________ method of assigning costs to inventory and cost of goods sold exactly matches the costs of items with the revenues they generate and would be used when items can be easily traced to the purchase invoice cost.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 2

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

Accepted Answer

The answer of An advantage of the _________________ method of...

Question 3

If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when the goods arrive at their destination.

Accepted Answer

The answer of If the _______________ is responsible for paying...

Question 4

The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.

Accepted Answer

The answer of The _____________________ is a measure of how...

Question 5

The cost of an inventory item includes the ____________, plus ______________ costs necessary to put it in a place and condition for sale.

Accepted Answer

The answer of The cost of an inventory item includes...

Question 6

An overstated beginning inventory will ______________ cost of goods sold and _____________ net income.

Accepted Answer

The answer of An overstated beginning inventory will ______________ cost...

Question 7

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between ___________________ and __________________.

Accepted Answer

The answer of Regardless of what inventory method or system...

Question 8

When applying the lower of cost or market method of inventory valuation, market is defined as the _____________________.

Accepted Answer

The answer of When applying the lower of cost or...

Question 9

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.

Accepted Answer

The answer of When purchase costs regularly rise, the ___________________...

Question 10

The ______________________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 11

The _________________ method is commonly used to estimate the value of inventory that has been destroyed, lost, or stolen.

Accepted Answer

The answer of The _________________ method is commonly used to...

Question 12

Goods on consignment are goods that are shipped by the owner, called the ______________, to another party called the _____________________.

Accepted Answer

The answer of Goods on consignment are goods that are...

Question 13

The ______________________ method of assigning costs to inventory and cost of goods sold required that we divide the cost of goods available for sale by the units of inventory available at the time of each sale.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 14

The ____________________ ratio reflects how much inventory is available in terms of days' sales.

Accepted Answer

The answer of The ____________________ ratio reflects how much inventory...

Question 15

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.

Accepted Answer

The answer of When purchase costs regularly rise, the ___________________...

Question 16

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

Accepted Answer

The answer of The _____________________ method of assigning costs to...

Question 17

_______________________ is the estimated sales price of damaged goods minus the cost of making the sale.

Accepted Answer

The answer of _______________________ is the estimated sales price of...

Question 18

Some companies use the _________________ principle or the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory.

Accepted Answer

The answer of Some companies use the _________________ principle or...

Quiz 6: Inventories and Cost of Sales

The ______________________ method of assigning costs to inventory and cost of goods sold exactly matches the costs of items with the revenues they generate and would be used when items can be easily traced to the purchase invoice cost.

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when the goods arrive at their destination.

The _____________________ is a measure of how quickly a merchandiser sells its merchandise inventory.

The cost of an inventory item includes the , plus __ costs necessary to put it in a place and condition for sale.

An overstated beginning inventory will __ cost of goods sold and _ net income.

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between _ and .

When applying the lower of cost or market method of inventory valuation, market is defined as the _____________________.

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.

The ______________________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

The _________________ method is commonly used to estimate the value of inventory that has been destroyed, lost, or stolen.

Goods on consignment are goods that are shipped by the owner, called the , to another party called the _______.

The ______________________ method of assigning costs to inventory and cost of goods sold required that we divide the cost of goods available for sale by the units of inventory available at the time of each sale.

The ____________________ ratio reflects how much inventory is available in terms of days' sales.

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

_______________________ is the estimated sales price of damaged goods minus the cost of making the sale.

Some companies use the _ principle or the __ constraint to avoid assigning incidental costs of acquiring merchandise to inventory.