Fill in the Blank Questions
179. If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when goods are loaded on the transport vehicle.
180. If the _______________ is responsible for paying the freight, ownership of merchandise inventory passes when the goods arrive at their destination.
181. If damaged goods can be sold at a reduced price, they are included in inventory at their ________________________.
182. Some companies use the _________________ constraintor the __________________ constraint to avoid assigning incidental costs of acquiring merchandise to inventory.
183. The cost of an inventory item includes the _____________, plus ______________ costs necessary to put it in a place and condition for sale.
184. When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.
185. When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.
186. An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.
187. An overstated beginning inventory will ______________ cost of goods sold and _____________ net income.
188. The ____________________ ratio reflects how much inventory is available in terms of days' sales.