Flashcards
Chapter 18 Flashcards
Cards in this deck (13)
- 1Average inventoryTotal of all inventories divided by number of times inventory taken.
(Chapter 18) - 2Distribution of overheadCompanies distribute overhead by floor space or sales volume.
(Chapter 18) - 3First-in, first-out (FIFO) methodThis method assumes the first inventory brought into the store will be the first sold. Ending inventory is made up of goods most recently purchased.
(Chapter 18) - 4Gross profit methodUsed to estimate value of inventory.
(Chapter 18) - 5Inventory turnoverRatio that indicates how quickly inventory turns.
(Chapter 18) - 6Just-in-time (JIT) inventory systemSystem that eliminates inventories. Suppliers provide materials daily as manufacturing company needs them.
(Chapter 18) - 7Last-in, first-out (LIFO) methodThis method assumes the last inventory brought into the store will be the first sold. Ending inventory is made up of the oldest goods purchased.
(Chapter 18) - 8Overhead expensesOperating expenses not directly associated with a specific department or product.
(Chapter 18) - 9Periodic inventory systemPhysical count of inventory taken at end of a time period. Inventory records are not continually updated.
(Chapter 18) - 10Perpetual inventory systemInventory records are continually updated; opposite of periodic inventory system.
(Chapter 18) - 11Retail methodMethod to estimate cost of ending inventory. The cost ratio times ending inventory at retail equals the ending cost of inventory.
(Chapter 18) - 12Specific identification methodThis method calculates the cost of ending inventory by identifying each item remaining to invoice price.
(Chapter 18) - 13Weighted-average methodCalculates the cost of ending inventory by applying an average unit cost to items remaining in inventory for that period of time.
(Chapter 18)
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- Flashcards on Chapter 18 Flashcards, created by jesse baney on 26/09/2024.
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