Match the Term to the Appropriate Definition

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Lower of Cost or Market/Net Realizable Value Rule

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