ACC 211 CH.6

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Anonymous
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223477
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ACC 211 CH.6
Updated:
2013-06-11 20:53:04
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ACC 211
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ACC 211 CH.6
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  1. average inventory cost flow method
    The method of inventory costing that is based on the assumption that costs should be charged against revenue by using the weighted average unit cost of the items sold.
  2. consigned inventory
    Merchandise that is shipped by manufacturers to retailers who act as the manufacturer’s selling agent.
  3. Consignee
    The name for the retailer in a consigned inventory arrangement.
  4. Consignor
    The name for the manufacturer in a consigned inventory arrangement.
  5. first-in, first-out (FIFO) inventory cost flow method
    The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.
  6. gross profit method
    A method of estimating inventory cost that is based on the relationship of gross profit to sales.
  7. inventory subsidiary ledger
    A ledger containing individual accounts with a common characteristic.
  8. inventory turnover
    The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.
  9. last-in, first-out (LIFO) inventory cost flow method
    A method of inventory costing based on the assumption that the most recent merchandise inventory costs should be charged against revenue.
  10. lower-of-cost-or-market (LCM) method
    A method of valuing inventory that reports the inventory at the lower of its cost or current market value (replacement cost).
  11. net realizable value
    The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.
  12. number of days’ sales in inventory
    The relationship between the volume of sales and inventory, computed by dividing the inventory at the end of the year by the average daily cost of goods sold.
  13. physical inventory
    A detailed listing of merchandise on hand.
  14. purchase order
    The purchase order authorizes the purchase of the inventory from an approved vendor.
  15. receiving report
    The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected.
  16. retail inventory method
    A method of estimating inventory cost that is based on the relationship of gross profit to sales.
  17. specific identification inventory cost flow method
    Inventory method in which the unit sold is identified with a specific purchase.

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