Chapter 8, Problem 8.13BE

When would a company use the specific identification method of inventory cost allocation?

Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.

The following information is taken from a companys records. Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?

Does the use of a perpetual system eliminate the need for taking a physical inventory count?

When computing ending inventory, what is the difference between a LIFO computation and a FIFO computation?

Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________ Provide brief explanation.

Which of the three methods of inventory costing— FIFO, LIFO, or weighted average cost—will in general yield an inventory cost most nearlyapproximating current replacement cost?

Explain an example how to calculate net cost of inventory.

In the financial accounting for inventory, what is a cost flow assumption?