Listed below are several terms and phrases associated with inventory measurement. Pair each item from the list below with the it

Question

3 years ago

11

Listed below are several terms and phrases associated with inventory measurement. Pair each item from the list below with the it

em of the following list that is most appropriately associated with it.
1. Perpetual inventory system
2. Periodic inventory system
3. F.o.b. shipping point
4. Gross method
5. Net method
6.Cost index
7. F.o.b. destination
8. FIFO
9. LIFO

a. Legal title passes when goods are delivered to common carrier.
b. Goods are transferred to another company but title remains with transferor.
c. Purchase discounts not taken are included in inventory cost.
d. If LIFO is used for taxes, it must be used for financial reporting.
e. Assumes items sold are those acquired first.
f. Assumes items sold are those acquired last.
g. Purchase discounts not taken are considered interest expense.
h. Used to convert ending inventory at year-end cost to base year cost.
i. Continuously records changes in inventory.

Business

2 answers:

Flura [38] · Answer 1 · 2022-09-02T09:41:52+03:00

Answer:

Explanation:

. Perpetual inventory system --- Continuously records changes in inventory

2. Periodic inventory system---- Adjusts inventory at the end of the period.

3. F.o.b. shipping point----- Legal title passes when goods are delivered to common carrier.

4. Gross method--- Purchase discounts not taken are included in inventory

5. Net method--- Purchase discounts not taken are considered interest expense.

6.Cost index--- Used to convert ending inventory at year-end cost to base year cost.

7. F.o.b. destination---Legal title passes when goods arrive at location.--- The meaning was not provided

8. FIFO--- Assumes items sold are those acquired first.

9. LIFO----Assumes items sold are those acquired last.

10. Consignment---Goods are transferred to another company but title remains with transferor ---this has a meaning but did not have the word consignment included

11.IRS conformity rule----- If LIFO is used for taxes, it must be used for financial reporting.

-- this had the meaning but the word IRS conformity rule was not on the list

xenn [34] · Answer 2 · 2022-09-02T08:35:16+03:00

Answer:

The grouping of the items and measurements are in the explanation

Explanation:

The question is to determine the placement of the items based on the inventory measurement list given

Inventory measurement Item to be measured

1. Perpetual inventory system Continuously records changes in

inventory

2. Periodic inventory system Continuously records changes in

inventory

3. F.o.b. shipping point Legal title passes when goods are

delivered to common carrier.

4. Gross method Purchase discounts not taken are

included in inventory cost.

5. Net method Purchase discounts not taken are

considered interest expense.

6.Cost index Used to convert ending inventory at

year-end cost to base year cost.

7. F.o.b. destination Goods are transferred to another

company but title remains with

transferor.

8. FIFO Assumes items sold are those

acquired first.

9. LIFO Assumes items sold are those

acquired last.

Quite a number of the items are self explanatory for instance, FIFO is first in first out and it deals with inventory sold based on those acquired first and the cost while LIFO is last in first out and it deals with inventory based on the cost of those that were acquired last

Also F.O.B shipping point means the seller of a product bears all risks until it gets to the destination while F.O.B destination means the risks on board shipping are already borne by the receipient.

It should also be noted that any thing that deals with the continous record of inventory is taken care of either by the perpetual inventory system or the periodic inventory system.