Match Each Definition with the Correct Term Below

question 55

Multiple Choice

Match each definition with the correct term below.
-Specific identification method

• A)An inventory management system in which the Internet is used to order and track goods.
• B)A method of valuing inventory that assumes that costs of the first items acquired should be assigned to the first items sold.
• C)A method of estimating inventory that uses the ratio of cost to retail price.
• D)Merchandise that its owner places on the premises of another company with the understanding that payment will be made only when the merchandise is sold.
• E)An inventory management system in which goods arrive just at the time they are needed.
• F)when sales have reduced inventories below the levels set in prior years.
• G)A method of estimating inventory that assumes the gross margin for a business remains relatively stable from year to year.
• H)The association of costs with their assumed flow in the operations of a company.
• I)A method of valuing inventory that assumes that the costs of the last items purchased should be assigned to the first items sold.
• J)A method of valuing inventory that identifies the cost of each item in ending inventory.

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Definitions:

UCC

The Uniform Commercial Code consists of regulations that oversee business dealings within the United States.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications for a contract to be formed.

Parol Evidence Rule

A legal principle stating that oral agreements or statements made prior to or at the time of a written contract cannot contradict the terms of the written contract.

Merchant

An individual or company engaged in the business of selling goods or services.