Chapter 7 Flashcards
1
Q
inventory
A
stuff a business sells
2
Q
inventory controls
A
- control ordering and acceptance of inventory (purchase orders)
- establish physical controls over inventory
- periodically take physical count of inventory
- record damaged goods
- record sales
- confirm shipping
- keep source documents
3
Q
Inventory Costs
A
interest or operating costs
storage and handling costs
taxes, insurance, and shrinking costs
transportation costs
purchase cost
4
Q
Ending merchandise Inventory
A
Number of units on hand * Unit cost
5
Q
COGS
A
Cost of Goods Sold
6
Q
Cost of goods sold
A
units sold * cost
7
Q
Inventory Costing Methods
A
- Specific-Identification
- First-in, First-out (FIFO)
- Last-in, First-out (LIFO)
- Average Cost
8
Q
Which of the following inventory costing methods is used least?
A
Specific Identification
9
Q
specific identification costing
A
based on the cost of a specific unit of inventory
10
Q
specific identification costing is best for
A
things like cars, jewelry, real estate
11
Q
FIFO
A
First in first out
12
Q
FIFO Costing
A
First purchase= first COGS
13
Q
COGAFS
A
Cost of goods available for sale
14
Q
COGAFS =
A
Beginning Inventory + Purchases
15
Q
LIFO
A
Last in first out
