Flashcards
CH. 18 flashcards
Flashcards do conjunto (15)
- 1Average InventoryTotal of all inventories divided by number of times inventory taken.
- 2Distribution of OverheadCompanies distribute overhead by floor space or sales volume.
- 3FIFO MethodAssumes the first inventory brought into the store will be the first sold. Ending inventory is made up of goods most recently purchased.
- 4GAAPAccounting rules or standards set by a policy board to establish commonly accepted reporting of accounting info.
- 5Gross Profit MethodUsed to estimate value of inventory.
- 6IFRSAccounting Rules or standards used internationally to establish commonly accepted reporting of accounting info.
- 7Inventory TurnoverRatio that indicates how quickly inventory turns: cost of goods sold / average inventory at cost.
- 8Just in time Inventory SystemEliminates inventories; suppliers provide materials daily as manufacturing company needs them.
- 9LIFO MethodAssumes the last inventory brought into store will be the first sold. Ending inventory is made up of the oldest goods purchased.
- 10Overhead expensesOperating expenses not directly associated with a specific department or product.
- 11Periodic inventory systemPhysical count of inventory taken at end of a time period. Inventory records are not continually updated.
- 12Perpetual Inventory SystemRecords are continually updated; opposite of periodic inventory system.
- 13Retail MethodMethod to estimate cost of ending inventory. The cost ratio times ending inventory at retail equals the ending cost of inventory.
- 14Specific identification methodCalculates the cost of ending inventory by identifying each item remaining to invoice price.
- 15Weighted-Average MethodCalculates the cost of ending inventory by applying an average unit cost to items remaining in inventory for that period of time.
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- FlashCards sobre CH. 18 flashcards, criado por Jack Lubischer em 28-09-2024.
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- Jack Lubischer
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