CHAPTERS 4,5&6 -Page 27. The accounting be consistent with the physio a. called the matching prie. ccoun b. called the consistency prin that requiren that the cost flow assumption aysical movement of goods 1 nonexistent: that is, there is no a d. called the physical tlow assumpt o 28. In a period of increasing prices, whomta tion. will result in the lowest amount of a. FIFO b. LIFo c. Average Cost prices, which inventory flow assumption assumptions. or the period will be the same under al1 29. An error in the physical count of goods ot of the endins hand at the end of a period resulted in a $10, 000 overstatement of the The effect of this error in the current period 1 Cost of Goods Sold Net Income Understated Overstated Understated Overstated Understated Overstated Overstated Understated d. n periods of rising prices, the inventory method which results in ch inventory value on the balance sheet that is closest to current 30. I cost is the a. FIFo method. b. LIFO method. c. average cost method. d. tax method. 31. The consistent application of an inventory costing method is essential for a. conservatism. b. accuracy c. comparability d. efficiency