Inventory Management

What does FIFO stand for?

• Fast in, fast out
• First in, first out
• First income, first out

Beginning inventory + Inventory purchases = ??

• Cost of good sold
• Cost of goods available for sale
• Ending inventory
• Total units sold

Which cost flow method uses the oldest inventory cost as cost of goods sold when a product is sold?

• FIFO
• LIFO
• Cash
• Weighted Average

Which of the following cost flow methods would provide the lowest amount of net income (assuming normal inflation)?

• FIFO
• LIFO
• Cash
• Weighted Average

Net sales - cost of good sold = ?

• Revenue
• Net income
• Cost of goods available for sale
• Gross margin

Which cost flow method uses the oldest inventory cost as cost of goods sold when a product is sold?

• FIFO
• LIFO
• Cash
• Weighted Average

The inventory system that identifies exactly which inventory item was sold is...

• Weighted-average

• First-in, first-out (FIFO)

• Last-in, first-out

  (LIFO)

• Specific identification

The inventory system that calculates a weighted-average cost based on the cost of goods available for sale and the number of units available is called...

• Specific identifcation

• Weighted-average

• First-in, first-out

  (FIFO)

• Last-in, first-out

  (LIFO)

What is COGS?

• (A) Cost of Goods Sold

• (B) The company's cost to make, provide and deliver products and services sold.

• (C) "Product Costs"

• (D) All of the above

What is Gross Margin?

• The profitability at a product-level

  (Revenue - COGS)

• A rude way to refer to a negative profit (a loss)

• The overall profit of a business after including all expenses