Chapter 6 CBAD 201 questions well answered to pass

Chapter 6 CBAD 201 questions well
answered to pass

periodic inventory system - correct answer ✔✔low volume



perpetual inventory system - correct answer ✔✔high volume -- automatic updates



specific identification - correct answer ✔✔any item that has a vin number



what does FIFO stand for - correct answer ✔✔first in first out



LIFO - correct answer ✔✔Last in first out



average cost method - correct answer ✔✔uses weighted average unit cost of goods available for sale for
both cost of goods sold and ending inventory



when would you use average cost method - correct answer ✔✔office supplies



What is FIFO? - correct answer ✔✔First in, First out. it's a system to ensure old product is used before
new product.



What is LIFO? - correct answer ✔✔Last-In-First-Out - LIFO assumes the last stock bought by the business
is sold first and therefore the cost of each unit sold is the last cost recorded. So we have 14 cartons of
milk and we last paid $2.50 therefore the total is $30.00



be careful with what regarding LIFO? - correct answer ✔✔dates of when they have sale



A company uses LIFO in one year, then switches to FIFO and then to

average−cost.