Match the Term and the Definition

question 34

Short Answer

Match the term and the definition.Not all definitions will be used.
_____ raw materials inventory.
_____ FIFO.
_____ inventory write-down.
_____ merchandiser.
_____ inventory turnover ratio.
_____ lower of cost or market.
_____ manufacturer.
_____ finished goods inventory.
_____ LIFO.
A.Inventory that reflects goods currently under production.
B.The concept that a company needs to report amounts separately only if large enough to affect decisions.
C.A company that buys raw materials and produces goods for sale to others.
D.Also known as least cost measure,it is the concept that firms should use the lowest unit cost of those in inventory to evaluate the rest.
E.When the company reduces the book value of inventory that has declined in market value.
F.The percentage of a company's total inventory that is in raw materials inventory.
G.The interest a company loses when it holds goods in inventory.
H.The concept that a company should report inventory at either its cost or its current market value,whichever is less.
I.A company that buys finished goods from other companies and sells them to others.
J.An inventory costing method that assumes the goods sold were the oldest in inventory.
K.An analysis of the change in storage costs for inventory.
L.When a company does not immediately report a known loss but waits until a period with high revenues to report it.
M.An inventory costing method that assumes the goods sold were the newest in inventory.
N.A company's stockpile of inputs to be used to manufacture goods.
O.A manufacturer's stockpile of goods that is ready to be sold.
P.A tool for analyzing the frequency with which inventory rises and falls as a business buys and sells goods.