The costing method that uses the price of merchandise purchased last to calculate the cost of

merchandise sold first is called

A form used during a physical inventory to record information about each item of merchandise

on hand is called a(n)

The number of times the average amount of merchandise inventory is sold during a specific period of time is called the

Goods that are given to a business to sell but for which title remains with the vendor are called a

If an inventory is taken once each year, the business must be using the perpetual inventory method.

A periodic inventory maintains a continuous record of merchandise inventory increases and decreases.

To determine the inventory cost using the lower of cost or market, a business compares the cost of inventory using its normal inventory costing method (FIFO, LIFO, or weighted-average) to the current replacement cost of the inventory. The inventory is valued at whichever cost is

lower.

Comparing inventory costing methods in times of rising prices, the last-in, first-out method will result in the highest cost of merchandise sold.

International financial reporting standards do not allow the use of the last-in, first-out method.

To prepare monthly interim financial statements, a business should take the inventory monthly.

If ending inventory is overstated, net income will be overstated.

To use the retail method of estimating the inventory, the cost of purchases, sales, and the beginning merchandise inventory must be known. In addition, the retail price of items sold must be known.

Using the LIFO method, the units from the beginning inventory will be the first units included in the cost of merchandise sold.

Using the FIFO method, the units from the beginning inventory will be the first units included in the cost of the ending merchandise inventory.