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Understanding Inventory Valuation Methods

Authored by Rakesh Kumar Julka

Business

University

Used 2+ times

Understanding Inventory Valuation Methods
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15 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does FIFO stand for in inventory management?

First In, First Out

First In, Last Out

Fast In, Fast Out

First Inventory, First Out

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the LIFO inventory method, which items are sold first?

The oldest items

The newest items

The most expensive items

The least expensive items

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which inventory method averages out the cost of all items available for sale during the period?

FIFO

LIFO

Weighted Average Method

Specific Identification

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which inventory system updates inventory records continuously?

Periodic Inventory System

Perpetual Inventory System

Annual Inventory System

Seasonal Inventory System

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In a periodic inventory system, when is the inventory count updated?

Continuously

At the end of each day

At the end of each accounting period

At the beginning of each month

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which inventory valuation method might result in lower taxes during periods of rising prices?

FIFO

LIFO

Weighted Average Method

Specific Identification

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is the cost of goods sold (COGS) calculated under the FIFO method?

Using the cost of the newest inventory

Using the cost of the oldest inventory

Using the average cost of all inventory

Using the cost of the most expensive inventory

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