Cost of Goods Quiz

What is the importance of determining the cost of goods sold and the dollar amount of ending inventory?

• To determine the cost of advertising

• To determine the cost of production

• To determine the profit and net income of the business

• To determine the market situation and economic status

Which of the following are cost flow inventory methods?

• FIFO and LIFO only

• LIFO and Weighted average cost

• FIFO, LIFO, Average Cost, and Specific identification

• FIFO and Specific identification

What does FIFO stand for in the context of inventory costing?

• Last In, Last Out

• First In, First Out

• First In, Last Out

• Last In, First Out

What does LIFO stand for in the context of inventory costing?

• Last In, Last Out

• Last In, First Out

• First In, Last Out

• First In, First Out

Which method assumes that the cost of the earliest goods purchased are the first to be recognized as the cost of goods sold?

• Specific identification

• Weighted average cost

• LIFO

• FIFO