Multiple choice questions select the best answer from

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Multiple-Choice Questions Select the best answer from those provided. 27 In a periodic inventory system the ending inventory and cost of goods sold must be determined by a. external auditors. b. physical count. c. a certification of inventory. d. reference to a running inventory balance.
28 A periodic system of inventory
29 The use of perpetual inventory systems is preferred where a
30 Goods held on consignment are included in the inventory of a. the consignor. b. the consignee. c. both the consignor and the consignee. d. neither the consignor nor the consignee. 31 Manufacturing costs not considered to be closely associated with production are called 050609 1 09-Inventories.doc
32 Variable costing is also referred to as
33 Using absorption costing a. only fixed costs are inventoried. b. only variable costs are inventoried. c. all production costs are inventoried. d. fixed costs are expensed as incurred.
34 Analysts must be aware that with the use of absorption costing, as inventory absorbs more fixed costs, reported income tends to
35 Analysts must recognize that the use of the specific identification method to value inventory has a serious deficiency because it
36 Goods available for sale needs to be allocated between
37 Financial analysts recognize that the deficiency of the FIFO cost flow as-sumption is the failure to a. match current costs with current revenues. b. match current costs with oldest revenues. c. match oldest costs with current revenues. d. match oldest costs with oldest revenues.

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