Match the following sentences to the inventory cost flow method they describe.
a. FIFO
b. L-70 o. Avenge Coat
I. Produces the same COGS under both the periodic and the perpetual inventory systems.
2. Rarely used with a perpetual inventory system.
3. Produces results that art similar to the specific identification method.
4. Widely used for tax purposes.
5. Never results in either the highest or lowest possible net income.
6. Produces the highest got* profit when costs are decreasing.
7. Produced the highest ending inventory when costs are increasiag.
3. Assign the same value to all inventory units.
9. Does not follow the physical flow of goods in most cases.
10. Cost of the latest purchases are assigned to ending inventory.
Multiple Choke
Identify the choice that best completes the statement or answer the question.
11. Which of the following is mg an example for safeguarding inventory?
a. Storing inventory in restricted areas.
b. Physical devices such as two-way minors, cameras, and alarms.
c. Matching receiving documents, purchase orders, and vendor's invoke.
d. Returning inventory that is defective or broken.
12. Ending inventory is made up of the oldest purchased when • company uses
a. fint-lu first-out
b. last-In, fust-out
c, avenge cost
d. retail method