Match the Descriptions with Inventory Costing Methods by Entering the Proper

question 101

Short Answer

Match the descriptions with inventory costing methods by entering the proper letter in the space to the left.
A. Specific identification
B. Weighted average
C. FIFO
D. None of the above is correct. $$\begin{array} { | c | l | } \hline 1 . & \text { Tends to match older costs with current revenue. } \\ \hline 2 . & \text { Cost of goods sold and inventory are costed at the oldest costs. } \\ \hline 3 . & \text { Inventory and cost of goods sold are valued at the same unit cost. } \\\hline \text { 4. } & \begin{array} { l } \text { Requires computation of an average cost for the entire period excluding beginning } \\\text { inventory. }\end{array} \\ \hline 5 . & \text { Requires computation of a new unit cost after each purchase and after each sale. } \\ \hline \text { 6. } & \text { Subject to manipulation by arbitrary choice of unit costs when sold or issued. } \\\hline \text { 7. } & \text { Cost of goods sold is costed at the oldest unit costs. } \\ \hline8. & \text { Inventory is costed at the newest unit costs. } \\\hline\end{array}$$

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Definitions:

Inspection Samples

Specific items taken from a larger batch or lot for the purpose of testing or examining them to ensure they meet specified standards.

Control Limits

The boundaries in control charts that signal when a process is out of control and corrective action may be needed.

Sample Range

The difference between the highest and lowest values in a set of sample data, used as a measure of variability.

Sample Size

is the number of observations or data points collected in a study or used in a statistical sample.