1. Holding high levels of inventory result in ____ inventory carrying costs and ____ stockout costs.
2. The Cost of Goods Sold can be defined as __________________.
3. The term 'indirect costs' refers to _______________________.
4. The selling price less the cost of marketing equals the __________________.
5. Budgetary control systems involve ______________.
6. The term 'cycle counting' refers to ___________________.
7. Which is the correct equation for determining the cost of goods sold?
8. Which is not a product cost?
9. Which is not a period expense?
10. Why wouldn't a company purchase enough inventory to last for several months at a time?
11. Which type of accountant works most closely with inventory?
12. Which is NOT an acceptable method for determining the cost of inventory?
13. Which is NOT a factor when applying the lower of the cost method or the market valuation method?
14. Which is NOT a characteristic of the use of current value bases to determine inventory values and cost of goods sold?
15. Which is NOT a characteristic of the LIFO method?
16. Which inventory systems is designed so that the cost of withdrawals is recorded at the time assets are withdrawn from inventory?
17. Which inventory methods typically results in a lower net income?
18. Which inventory cost flow assumptions is physically appropriate for liquid or other types of products for which distinguishing different lots is difficult?
19. Which cost would not be included as an element of manufacturing overhead?
20. Which cost flow assumption conform to most actual physical inventory flows?
21. Which of the following concepts states that if a firm uses a LIFO assumption in its income tax return, it must also use LIFO in its financial reports to shareholders?
Which of the following concepts states that if a firm uses a LIFO assumption in its income tax return, it must also use LIFO in its financial reports to shareholders?
22. The term 'safety stock' _________________.
23. The term "distressed inventory" refers to _________________.
24. The procedure whereby a manufacturing firm charges the fixed production cost to the period rather than assigning it as a cost of the product is called ____________________.
25. The procedure whereby a manufacturing firm charges the fixed production cost to the period rather than assigning it as a cost of the product is called ____________________.
26. The primary benefit of the specific identification method of inventory costing is that ________________.
The primary benefit of the specific identification method of inventory costing is that ________________.
27. The portion of merchandise that is available for sale or use and that is allocated to the current period's usage is called the _______________.
28. The inventories of a manufacturing company include __________________.
29. The difference between the selling price of an item and its replacement cost at the time of sale is called the _____________________.
30. The difference between cost of goods sold based on replacement cost and cost of goods sold based on acquisition cost is the ___________________.
31. The account title and the term that designates acquisition of merchandise during the accounting period is called ___________________ .
32. The _____________ is the amount a firm would have to pay to acquire a replacement for an inventory item at that a particular time.
33. Partially completed products in the factory are called _________________ .
34. LIFO refers to the cost flow for units sold. The parallel description for ending inventory is ____________.
LIFO refers to the cost flow for units sold. The parallel description for ending inventory is ____________.
35. Inventory turnover can be calculated using _______________.
Inventory turnover can be calculated using _______________.
36. From an international perspective, which of the following statements is NOT
From an international perspective, which of the following statements is NOT
37. For a bakery, flour would be considered _________________.
For a bakery, flour would be considered _________________.
38. During periods of rising prices, which of the following cost flow assumptions produces the highest reported net income?
During periods of rising prices, which of the following cost flow assumptions produces the highest reported net income?
39. At which of the following levels are indirect costs added to inventory?
At which of the following levels are indirect costs added to inventory?
40. A predetermined estimate of what each item of manufactured inventory should cost, based on past experience and planned production methods, is called the __________________.
A predetermined estimate of what each item of manufactured inventory should cost, based on past experience and planned production methods, is called the __________________.
41. Which of the following is the valuation basis that departs from cost when the utility of the goods is no longer as great as their cost?
Which of the following is the valuation basis that departs from cost when the utility of the goods is no longer as great as their cost?
42. FIFO refers to the cost of the units sold. The parallel description for ending inventory is ____________.
FIFO refers to the cost of the units sold. The parallel description for ending inventory is ____________.
43. Which of the following is a predetermined estimate of what each item of manufactured inventory should cost based on past cost and planned production methods?
Which of the following is a predetermined estimate of what each item of manufactured inventory should cost based on past cost and planned production methods?
44. Which of the following is NOT a valid characteristic of variable costing (direct costing) for inventories for manufacturing firms?
Which of the following is NOT a valid characteristic of variable costing (direct costing) for inventories for manufacturing firms?
45. If the ______________ is used for income tax purposes, the Internal Revenue Service requires its use for income determination for financial reports to owners.
If the ______________ is used for income tax purposes, the Internal Revenue Service requires its use for income determination for financial reports to owners.
46. The ______________________ is the estimated selling price of the inventory less any estimated costs for making the item ready for sale and actually selling it.
The ______________________ is the estimated selling price of the inventory less any estimated costs for making the item ready for sale and actually selling it.
47. Which of the following is a method for assigning cost in which a firm can physically match individual units sold with a specific purchase?
Which of the following is a method for assigning cost in which a firm can physically match individual units sold with a specific purchase?
48. Variable costing (direct costing) is acceptable for use in determining inventory cost by _________________.
Variable costing (direct costing) is acceptable for use in determining inventory cost by _________________.
49. Which of the following cost flow assumptions assigns the costs of the earliest units acquired to the withdrawals, and the costs of the most recent acquisitions to the ending inventory?
Which of the following cost flow assumptions assigns the costs of the earliest units acquired to the withdrawals, and the costs of the most recent acquisitions to the ending inventory?
50. Which of the following concepts states that gains (or losses) caused by increases (or decreases) in the market value of assets should not appear in the income until a firm sells the particular assets?
Which of the following concepts states that gains (or losses) caused by increases (or decreases) in the market value of assets should not appear in the income until a firm sells the particular assets?
51. Which of the following entails carrying units in inventory at their acquisition costs until they are sold?
Which of the following entails carrying units in inventory at their acquisition costs until they are sold?
52. At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000. What is the ending balance in the Work in Process Inventory account?
At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000. What is the ending balance in the Work in Process Inventory account?
53. The term "anticipation stock" refers to _____________________.
The term "anticipation stock" refers to _____________________.
54. Which of the following is the correct sequence of cost flows for a manufacturing firm?
Which of the following is the correct sequence of cost flows for a manufacturing firm?
55. The procedure in which a manufacturing firm includes all production costs as a cost of the product is called _________________.
The procedure in which a manufacturing firm includes all production costs as a cost of the product is called _________________.
56. The term "economy of scale" refers to __________________.
The term "economy of scale" refers to __________________.
57. Losses from inventory due to theft, evaporation, and waste are called ______________.
Losses from inventory due to theft, evaporation, and waste are called ______________.
58. Which of the following cost flow assumptions leads to the deferral of income taxes during periods of rising prices?
Which of the following cost flow assumptions leads to the deferral of income taxes during periods of rising prices?
59. A stock of goods owned by a firm and held for sale to customers is called _____________.
A stock of goods owned by a firm and held for sale to customers is called _____________.
60. For an auto manufacturer, steel would be considered ___________________.
For an auto manufacturer, steel would be considered ___________________.
61. The ________________ is the difference between the current replacement cost of the ending inventory and its acquisition cost.
The ________________ is the difference between the current replacement cost of the ending inventory and its acquisition cost.
62. it results in higher net income
it results in higher net income
63. The primary benefit of cycle counting is that __________________.
The primary benefit of cycle counting is that __________________.
64. The term "inventory turnover" refers to ______________________.
The term "inventory turnover" refers to ______________________.
65. Goods held for sale by a manufacturing concern are called _______________.
Goods held for sale by a manufacturing concern are called _______________.
66. Which of the following terms sometimes denotes the realized holding gain on inventory?
Which of the following terms sometimes denotes the realized holding gain on inventory?
67. The Work in Process account would not be debited for which of the following items?
The Work in Process account would not be debited for which of the following items?
68. Stored materials that will eventually become part of the goods to be produced are called _______.
Stored materials that will eventually become part of the goods to be produced are called _______.
69. The excess of FIFO or current cost over LIFO cost of inventories is called _________________.
The excess of FIFO or current cost over LIFO cost of inventories is called _________________.
70. Which of the following is NOT an example of distressed inventory?
Which of the following is NOT an example of distressed inventory?
71. The term "JIT Inventory" means _________________.
The term "JIT Inventory" means _________________.
72. Which of the following is the contra account title used to record discounts for early payments for merchandise?
Which of the following is the contra account title used to record discounts for early payments for merchandise?
73. At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000. What amount should XYZ report as Cost of Goods Sold for the year?
At the beginning of the year, XYZ reported balances in Work in Process Inventory and Finished Goods Inventory, respectively, of $174,000 and $102,000. During the year, materials, labor, and overhead costs totaling $678,000 were added to the production. Products costing $612,000 were transferred to finished goods during the year. At the end of the year, the balance in Finished Goods Inventory is $72,000. What amount should XYZ report as Cost of Goods Sold for the year?
74. In cash flow statements, reductions in inventory ___________________.
In cash flow statements, reductions in inventory ___________________.
75. Conventionally, accountants refer to the difference between sales and cost of goods sold as the ______________.
Conventionally, accountants refer to the difference between sales and cost of goods sold as the ______________.
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