Chapter 6 Review Flashcards
1
Q
Cost Flow Assumptions
A
LIFO
FIFO
Average Cost
2
Q
FIFO
A
Cost of earliest goods purchased are recognized first
3
Q
LIFO
A
Cost of the latest goods purchased are recognized first.
4
Q
Average Cost
A
Units on hand determine the need bring Inventory.
total cost/ units total= total unit cost
(units at end)(unit cost)= total cost
5
Q
Total Cost
A
Purchases up til point of sale
6
Q
Inventory Turnover Ratio
Days in Inventory
A
COGS / Average Inventory
365 / IT
7
Q
Which Perpetual Cost Flow Assumption is the same as Periodic
A
FIFO is the same for both.
