Which of the following inventory cost flow assumptions producesthe same ending inventory values under both the periodic
Question:
Which of the following inventory cost flow assumptions producesthe same ending inventory values under both the periodic andperpetual systems?
FIFO | ||
LIFO | ||
average | ||
dollar-value LIFO |
QUESTION 2
The Purchases Discounts Taken account may appear in theaccounting records if which one of the following methods is used toaccount for purchase discounts?
net price method | ||
gross price method | ||
allowance method | ||
sales price method |
QUESTION 3
Which one of the following statements is true?
Income manipulation is difficult under LIFO. | ||
Accounting principles do not require that the inventory costflow approximate the physical flow of goods. | ||
Companies may use LIFO for tax purposes and FIFO in thefinancial statements. | ||
In periods of declining prices, LIFO will result in the paymentof lower income taxes. |
QUESTION 4
Which one of the following statements is true?
FOB destination means the buyer has legal title to the goodswhile they are in transit. | ||
FOB shipping point means the seller has legal title to the goodswhile they are in transit. | ||
FOB destination means the seller has legal title to the goodsuntil they reach the buyer's place of business. | ||
FOB shipping point means the buyer acquires legal title to thegoods when they reach the buyer's place of business. |
QUESTION 5
A retail firm would normally use an inventory account titled
finished goods inventory | ||
merchandise inventory | ||
goods in process inventory | ||
raw materials inventory |
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein