Flashcards
Chapter 18 Definitions
Flashcards do conjunto (13)
- 1Perpetual Inventory SystemInventory records are continually updated; opposite of periodic inventory system
- 2Periodic Inventory SystemPhysical count of inventory taken at end of a time period. Inventory records are not continually updated
- 3Specific Identification MethodThis method calculates the cost of ending inventory by identifying each item remaining to invoice price
- 4Weighted Average MethodCalculates the cost of ending inventory by applying an average unit cost to items remaining in inventory for that period of time
- 5First In First Out (FIFO)This method assumes the first inventory brought into the store will be the first sold. Ending inventory is made up of goods most recently purchased
- 6Last In First Out (LIFO)This method assumes the last inventory brought into the store will be the first sold. Ending inventory is made up of the oldest goods purchased
- 7Retail MethodMethod to estimate cost of ending inventory. The cost ratio times ending inventory at retail equals the ending cost of inventory
- 8Gross Profit MethodUsed to estimate value of inventory
- 9Inventory TurnoverRatio that indicates how quickly inventory turns
- 10Average Inventory at CostTotal of all inventories divided by number of times inventory taken
- 11Just in Time (JIT) Inventory SystemSystem that eliminates inventories. Suppliers provide materials daily as manufacturing company needs them, 485.
- 12Overhead ExpensesOperating expenses not directly associated with a specific department or product
- 13Distribution of OverheadCompanies distribute overhead by floor space or sales volume
Informações
- Descrição
- Mathematics FlashCards sobre Chapter 18 Definitions, criado por CHRISTOPHER ELLIS em 01-10-2022.
- Criado por
- CHRISTOPHER ELLIS
- Visualizações
- 1
- Avaliação
Mais sobre Inventory Valuation and Costing Methods