BU 5101 Accounting Seminar 4

What type of company can you label Nestle as?

• Manufacturing Company

• Merchandising Company

• Service Company

• None of the above

Which inventory management method does Toyota adopt?

• Materials requirement planning

• Just-in-time management

• Economic order quantity

• Day sales of inventory

Which inventory costing method is not permitted in Singapore?

• First-in-First-Out (FIFO)

• Average Cost

• Specific Identification

• Last-in-Last out (LIFO)

True or False?

Companies are not allowed to adopt a different inventory costing method for the next accounting period

• True

• False

What are some of the costs that may be incurred when carrying inventory?

• Damage and Maintenance Cost

• Storage and Maintenance Cost

• Insurance and Taxes

• All of the above

What is NOT a goal of managing inventory?

• To provide satisfactory quantities of quality products

• To reduce the cost of carrying inventory

• To maximise profits

• To increase the happiness level of workers

In period of rising prices, which costing method will give you the lowest gross profits?

• Specific Identification

• FIFO

• LIFO

• Average Cost

In which inventory system is the physical count of inventory typically done at the end of an accounting period?

• Perpetual Inventory System

• Physical Inventory System

• Periodic Inventory System

• Practical Inventory System

In a consignment arrangement, the ownership of inventory typically belongs to:

• Consignor

• Consignee

• Both Consignor and Cosignee

• None of them

What does the term FOB in Goods in Transit stands for?

• Free On Board

• Foreign Overseas Board

• Freight On Board

• Financial Operating Budget