What does FIFO stand for in inventory management?

Inventory Fundamentals

Quiz
•
Financial Education
•
12th Grade
•
Easy
sailesh goenkka
Used 1+ times
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
First Out, First In
First In, Last Out
Last In, First Out
First In, First Out
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Explain the FIFO method of inventory cost flow.
The FIFO method of inventory cost flow assumes that the first items purchased are the first ones sold.
In FIFO, the cost of inventory is calculated based on the average cost of all items.
FIFO stands for First In First Out, meaning the last items purchased are sold first.
The FIFO method assumes that the last items purchased are the first ones sold.
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
How does the LIFO method differ from the FIFO method?
The LIFO method processes items in random order
The FIFO method processes items based on their size
The LIFO method processes items based on their alphabetical order
The LIFO method processes the most recently added items first, whereas the FIFO method processes the first added items first.
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Describe the Weighted Average method of inventory costing.
The Weighted Average method involves assigning the same cost to all inventory items regardless of their actual cost
The Weighted Average method calculates the cost of inventory items based only on their quantity, ignoring the actual cost
The Weighted Average method of inventory costing involves calculating the average cost of inventory items based on both the cost and quantity of each item.
The Weighted Average method of inventory costing is based on the last purchase price of each inventory item
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the Lower of Cost or Market rule in inventory valuation?
Inventory should be valued at the average of its historical cost and market value.
Inventory should be valued at the market value only.
Inventory should be valued at the lower of its historical cost or its market value.
Inventory should be valued at the higher of its historical cost or its market value.
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Define goods in transit in the context of inventory management.
Items that are damaged during transportation
Goods that are stored in a warehouse but not intended for sale
Inventory items that have been shipped but have not yet reached their final destination.
Inventory items that have been returned by customers
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What are some common causes of inventory errors?
Overabundance of snacks in the break room
Inaccurate data entry, lack of proper training, poor organization, theft or shrinkage, software glitches
Mercury being in retrograde
Alien interference
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