Accounting Terminology Listed Below Are Nine Technical Accounting Terms Introduced in This

question 34

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:
Just-in-time
Weighted average cost method
LIFO method
Gross profit method
Inventory shrinkage
FIFO method
Retail method
Inventory turnover
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
a. The flow assumptions in which the oldest units purchased are assumed to have remained in inventory.
b. A method of estimating the cost of goods sold and ending inventory based upon cost relationships from prior periods.
c. The practice of valuing inventory in the statement of financial position at expected sales prices, rather than at cost.
d. An inventory flow assumption involving only one "cost layer."
e. The inventory flow assumption likely to result in the highest reported amount of gross profit during a period of rising prices.
f. A technique for minimizing a company's investment in inventory, particularly inventories of raw materials and finished goods.
g. A measure of a company's ability to sell its inventory quickly.

---

Definitions:

Deviant Behavior

Actions or conduct that diverge from societal norms and expectations, often eliciting negative reactions from others.

Positivist Approach

An approach in sociology that beliefs social phenomena should be studied through observable, scientific methods to identify causal relationships and laws.

Constructionist Approach

A theoretical perspective that emphasizes the role of social constructs and interactions in the creation of reality and societal norms.

U.S. Court System

The judicial system of the United States, including federal and state courts, responsible for interpreting and applying the law.