chapter 6

type of inventory that matches each unit of inventory with its actual cost

• specific identification

• FIFO

• LIFO

• average cost

a grocery store that sells milk would use what type of inventory method?

• specific identification

• FIFO

• LIFO

• average cost

Ending inventory reflects current cost, as well as matches the physical flow.

• specific identification

• FIFO

• LIFO

• average cost

a grocery store that sells milk would use what type of inventory method?

• specific identification

• FIFO

• LIFO

• average cost

_________ does not maintain a continual record of inventory, and periodically adjusts for purchase and sale of inventory.

_________ inventory system maintains a continual record of inventory, as well as helps a company better manage inventory levels.

LIFO saves money on taxes true or false

• true

• false

________ reduces taxes.

Assumes last units purchased are the first sold

• specific identification

• FIFO

• LIFO

• average cost

Inventory items for which the manufacturing process is complete.

• work in process

• inventory

• finished goods

• raw materials