Question 10
Inventory costing methods place primary reliance on assumptions about the flow of
Question 11
Many companies use just-in-time inventory methods. Which of the following is not an advantage
of this method?
Question 12
Which of the following statements is correct with respect to inventories?
Question 13
In periods of rising prices, which is an advantage of using the LIFO inventory costing method?
Question 14
Jenks Company developed the following information about its inventories in applying the lower
of cost or market (LCM) basis in valuing inventories:
Product
Cost
Market
A
$57,000
$60,000
B
40,000
38,000
C
80,000
81,000
If Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be
Question 15
Selection of an inventory costing method by management does not usually depend on
Question 16
Which statement concerning lower of cost or market (LCM) is incorrect?
Question 17
Use the following information regarding Black Company and Red Company to answer the
question “Which of the following is Red Company's "cost of goods sold" for 2014 (to the closest
dollar)?”
Question 18
A low number of days in inventory may indicate all of the following except
Question 19
The LIFO reserve is
Question 20
Match the items below by entering the appropriate code letter in the space provided.
====================================================================
ACC 556 Chapter 7 Quiz (100% Score)