quizizz 5.2.6/5.2.7 Analyzing Results of valuing Inventory

Businesses that manage inventory levels report _____.

• shorter lead times

• lower sales

• more stock-outs

• fewer customers

The _____ method is based on the oldest purchases being sold first.

• LIFO

• FIFO

• weighted average

• gross profit

The _____ method is based on a new cost per unit calculated after each purchase.

• LIFO

• FIFO

• weighted average

• gross profit

In an economy with rising costs, the FIFO method will result in _____ gross profit.

• average

• lower

• no

• higher

In an economy with rising costs, the LIFO method will result in _____ net income.

• lower

• higher

• no

• average

A business wants to maximize its tax savings in an economy with declining costs. It should choose the _____ method.

• LIFO

• FIFO

• weighted average

• gross profit

The weighted average method will result in gross profit _____ the FIFO and LIFO methods.

• lower than

• higher than

• between

• the same as

If a company's gross profit turns out to be higher than it had expected, the gross profit method of estimating inventory will have _____ ending inventory.

• given no estimate of

• overestimated

• correctly estimated

• underestimated

A company has a lot of inventory and wants to get a sense of how much it has without having to count. It should choose the _____ method.

• gross profit

• FIFO

• LIFO

• weighted average

In an economy with rising costs, the FIFO method will result in _____ cost of goods sold.

• the lowest

• the highest

• no

• the average