Self Assessment Quizzes

CHAPTER 25: Section 2 Determining the Cost of Inventories

	1.	The inventory costing method which assumes that the first items purchased were the first items sold is called the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	2.	The physical flow of most merchandise is

		a.	first-in, first-out
		b.	last-in, first-out
		c.	up a lazy river
		d.	altered by physical activity

	3.	A sand and gravel company would most likely use the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	4.	The inventory costing method which assumes that the last items purchased are the first items sold is called the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	5.	A company that sold heating oil would most likely use the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	6.	An automobile dealership would most likely use the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	7.	The inventory costing method where the exact cost of each item is determined and assigned to that item is called the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method

	8.	The inventory costing method which assigns the average cost to each unit in inventory is called the

		a.	specific identification method
		b.	FIFO method
		c.	LIFO method
		d.	weighted average cost method