Inventory Management Test
A predetermined estimate of what each item of manufactured inventory should cost, based on past experience and planned production methods, is called the __________________.
A stock of goods owned by a firm and held for sale to customers is called _____________.
At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhea...
At which of the following levels are indirect costs added to inventory?
Conventionally, accountants refer to the difference between sales and cost of goods sold as the ______________.
During periods of rising prices, which of the following cost flow assumptions produces the highest reported net income?
FIFO refers to the cost of the units sold. The parallel description for ending inventory is ____________.
For a bakery, flour would be considered _________________.
For an auto manufacturer, steel would be considered ___________________.
From an international perspective, which of the following statements is NOT accurate?
Goods held for sale by a manufacturing concern are called _______________.
If the ______________ is used for income tax purposes, the Internal Revenue Service requires its use for income determination for financial reports to owners.
In cash flow statements, reductions in inventory ___________________.
Inventory turnover can be calculated using _______________.
LIFO refers to the cost flow for units sold. The parallel description for ending inventory is ____________.
Losses from inventory due to theft, evaporation, and waste are called ______________.
No entry is made for withdrawals from inventory until the end of the period under which of the following systems?
Partially completed products in the factory are called _________________ .
Stored materials that will eventually become part of the goods to be produced are called _______.
The _____________ is the amount a firm would have to pay to acquire a replacement for an inventory item at that a particular time.
The ________________ is the difference between the current replacement cost of the ending inventory and its acquisition cost.
The _________________ is the difference between the cost of goods sold based on replacement cost and the cost of goods sold based on acquisition cost.
The ______________________ is the estimated selling price of the inventory less any estimated costs for making the item ready for sale and actually selling it.
The account title and the term that designates acquisition of merchandise during the accounting period is called ___________________ .
The amount a firm would have to pay to acquire a replacement for an inventory item at a particular time is called the __________________.
The Cost of Goods Sold can be defined as __________________.
The difference between cost of goods sold based on replacement cost and cost of goods sold based on acquisition cost is the ___________________.
The difference between the current replacement cost of the ending inventory and its acquisition cost is the ________________.
The difference between the selling price of an item and its replacement cost at the time of sale is called the _____________________.
The difference between the selling price of an item and its replacement cost at the time of sale is the _______________.
The excess of FIFO or current cost over LIFO cost of inventories is called _________________.
The inventories of a manufacturing company include __________________.
The portion of merchandise that is available for sale or use and that is allocated to the current period's usage is called the _______________.
The primary benefit of cycle counting is that __________________.
The primary benefit of the specific identification method of inventory costing is that ________________.
The procedure in which a manufacturing firm includes all production costs as a cost of the product is called _________________.
The procedure whereby a manufacturing firm charges the fixed production cost to the period rather than assigning it as a cost of the product is called ____________________.
The selling price less the cost of marketing equals the __________________.
The term "anticipation stock" refers to _____________________.
The term "cycle counting" refers to ___________________.
The term "distressed inventory" refers to _________________.
The term "economy of scale" refers to __________________.
The term "indirect costs" refers to _______________________.
The term "inventory turnover" refers to ______________________.
The term "JIT Inventory" means _________________.
The term "safety stock" _________________.
The Work in Process account would not be debited for which of the following items?
Under a perpetual inventory system, _______________________.
Under which of the following cost flow assumptions are the costs assigned to the ending inventory the same as the costs of the earliest units acquired?
Under which of the following cost flow assumptions does the income statement report out-of-date cost of goods sold?
Variable costing (direct costing) is acceptable for use in determining inventory cost by _________________.
Which of the following concepts states that if a firm uses a LIFO assumption in its income tax return, it must also use LIFO in its financial reports to shareholders?
Which of the following cost flow assumptions assigns the costs of the earliest units acquired to the withdrawals, and the costs of the most recent acquisitions to the ending inventory?
Which of the following cost flow assumptions conforms to most actual physical inventory flows?
Which of the following cost flow assumptions leads to the deferral of income taxes during periods of rising prices?
Which of the following costs would not be included as an element of manufacturing overhead?
Which of the following entails carrying units in inventory at their acquisition costs until they are sold?
Which of the following inventory cost flow assumptions is physically appropriate for liquid or other types of products for which distinguishing different lots is difficult?
Which of the following inventory methods typically results in a lower net income?
Which of the following inventory systems is designed so that the cost of withdrawals is recorded at the time assets are withdrawn from inventory?
Which of the following is a method for assigning cost in which a firm can physically match individual units sold with a specific purchase?
Which of the following is a predetermined estimate of what each item of manufactured inventory should cost based on past cost and planned production methods?
Which of the following is NOT a characteristic of the LIFO method?
Which of the following is NOT a characteristic of the use of current value bases to determine inventory values and cost of goods sold?
Which of the following is NOT a factor when applying the lower of the cost method or the market valuation method?
Which of the following is not a period expense?
Which of the following is not a product cost?
Which of the following is NOT a valid characteristic of variable costing (direct costing) for inventories for manufacturing firms?
Which of the following is NOT an acceptable method for determining the cost of inventory?
Which of the following is NOT an example of distressed inventory?
Which of the following is the contra account title used to record discounts for early payments for merchandise?
Which of the following is the correct equation for determining the cost of goods sold?
Which of the following is the correct sequence of cost flows for a manufacturing firm?
Which of the following is the valuation basis that departs from cost when the utility of the goods is no longer as great as their cost?
Which of the following terms sometimes denotes the realized holding gain on inventory?
Which type of accountant works most closely with inventory?
Why wouldn't a company purchase enough inventory to last for several months at a time?