Inventory progress check

Other term for sales:

• deals

• revenue

• net income

• operating income

In how many categories is the inventory classified in a manufacturing business?

• 4

• 3

• 5

• 2

Under this inventory costing method, the stock that was acquired at the beginning of the period becomes COGS

• FIFO

• LIFO

• Average cost

• Special identification

What is the opportunity cost of maintaining high stock level?

• the cost of handling the goods

• the cost of insurance

• the risk of obsolescence

• the cost implied in having the capital tied up

How many cost methods are commonly used for the inventory?

• 3

• 5

• 2

• 4

How is the inventory costing impacting on the income statement?

• through the value of the ending inventory

• through the beginning inventory

• through the tax amount

• through the day-to-day purchases

When do we write down the inventory to its market value?

• book value < current replacement cost

• book value = 0

• book value > current replacement cost

• in periods of economic boom

Which is the method employed under situations as the one from the previous question?

• FIFO

• LIFO

• Average cost

• Lower of cost or market

Which inv. cost method is most accurate and recommendable in periods of persistent inflation?

• FIFO

• LIFO

• Average cost

How do we represent and interpret the rotation of inventory?

• in days

• in %

• in times

• in ratio