Match Each Definition with the Correct Term Below

Multiple Choice

Match each definition with the correct term below.
-First-in,first-out

A) An inventory management system in which the Internet is used to order and track goods.
B) A method of valuing inventory that assumes that costs of the first items acquired should be assigned to the first items sold.
C) A method of estimating inventory that uses the ratio of cost to retail price.
D) Merchandise that its owner places on the premises of another company with the understanding that payment will be made only when the merchandise is sold.
E) An inventory management system in which goods arrive just at the time they are needed.
F) when sales have reduced inventories below the levels set in prior years.
G) A method of estimating inventory that assumes the gross margin for a business remains relatively stable from year to year.
H) The association of costs with their assumed flow in the operations of a company.
I) A method of valuing inventory that assumes that the costs of the last items purchased should be assigned to the first items sold.
J) A method of valuing inventory that identifies the cost of each item in ending inventory.