Inventory Management MCQ

The term "cycle counting" refers to ___________________.

 

the inventory count performed by a bicycle store

a once-per-year inventory count

consistently counting selected inventory items throughout the year

a type of inventory counting performed only by auto manufacturers

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A predetermined estimate of what each item of manufactured inventory should cost, based on past experience and planned production methods, is called the __________________.

replacement cost

net realizable value

standard cost

acquisition cost

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Which of the following is not a product cost?

Depreciation on plant machinery

Salary of the vice president of production

Insurance associated with the delivery equipment

Property taxes associated with the factory building

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During periods of rising prices, which of the following cost flow assumptions produces the highest reported net income?

FIFO method

LIFO method

Weighted average method

All methods produce the same net result.

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Which of the following is a method for assigning cost in which a firm can physically match individual units sold with a specific purchase?

Average cost

Weighted cost

COGS

Specific identification

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The selling price less the cost of marketing equals the __________________.

net income

operating expense

net realizable value

cash flow

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The term "distressed inventory" refers to _________________.

inventory that must go through a stress test

inventory that is no longer useful or saleable

raw materials

finished goods

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Which type of accountant works most closely with inventory?

Tax accountant

General accountant

AP clerk

Cost accountant

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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?

$714,000

$582,000

$678,000

$642,000

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In cash flow statements, reductions in inventory ___________________.

are treated differently than other reductions in current assets

appear as an addition to net income in deriving cash flow from operations

appear in the financing section

appear in the investing section

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