Match the Term to the Appropriate Definition

question 80

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Consignment Inventory

• A)Inventory costing method that identifies the cost of the specific item that was sold.
• B)Inventory costing method that assumes that the costs of the first goods purchased are the costs of the first goods sold.
• C)The difference between net sales and cost of goods sold.
• D)The inventory that starts the manufacturing process.
• E)Inventory items being transported.
• F)Consists of products acquired in a finished condition,ready for sale without further processing.
• G)A valuation rule that requires Inventory to be written down when its market value falls below its cost.
• H)The expense that follows directly after Net Sales on a multiple step income statement.
• I)Beginning Inventory + Purchases - Cost of Goods Sold
• J)Goods a company is holding on behalf of the goods' owner.
• K)Inventory costing method that assumes that the costs of the last goods purchased are the costs of the first goods sold.
• L)Requires that if LIFO is used on the income tax return,it also must be used in financial statement reporting.
• M)Beginning Inventory + Purchases - Ending Inventory
• N)Goods that are in the process of being manufactured.
• O)Inventory costing method that uses the weighted average unit cost of the goods available for sale for both cost of goods sold and ending inventory.
• P)Goods that are held for sale in the normal course of business or are used to produce other goods for sale.
• Q)How many times (on average)that inventory has been bought or sold.
• R)Inventory that was in process and now is completed and ready for sale.
• S)A measure of the average number of days from the time inventory is bought to the time it is sold.

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Definitions:

Income Statement

A financial statement that shows a company's financial performance over a specific period by summarizing its revenues, expenses, and net income or loss.

Finished Goods Inventory

The total value of all completed products that are ready for sale but have not yet been sold.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The total cost accrued in making products completed during an accounting period, including labor, material, and overhead costs.