51. Which of the following is not an example for safeguarding inventory?
A. Storing inventory in restricted areas.
B. Physical devices such as two-way mirrors, cameras, and alarms.
C. Matching receiving documents, purchase orders, and vendor’s invoice.
D. Returning inventory that is defective or broken.
52. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
A. FIFO
B. LIFO
C. average
D. specific identification
53. Ending inventory is made up of the oldest purchases when a company uses
A. first-in, first-out
B. last-in, first-out
C. average cost
D. retail method
54. When merchandise sold is assumed to be in the order in which the purchases were made, the company is using
A. first-in, last-out
B. last-in, first-out
C. first-in, first-out
D. average cost
55. The two most widely used methods for determining the cost of inventory are
A. FIFO and LIFO
B. FIFO and average
C. LIFO and average
D. gross profit and average
56. Cost flow is in the order in which costs were incurred when using
A. average cost
B. last-in, first-out
C. first-in, first-out
D. weighted average
57. Cost flow is in the reverse order in which costs were incurred when using
A. weighted average
B. last-in, first-out
C. first-in, first-out
D. average cost
58. The inventory method that assigns the most recent costs to cost of goods sold is
A. FIFO
B. LIFO
C. average
D. specific identification
59. Inventory costing methods place primary emphasis on assumptions about
A. flow of goods
B. flow of costs
C. flow of goods or flow of costs depending on the method
D. neither flow or goods or flow of costs
60. The inventory costing method that reports the most current prices in ending inventory is
A. FIFO
B. Specific identification
C. LIFO
D. Average cost