Inventory
The buyer owns the goods until they are shipped
What is FOB Shipping Point
The first to be recognized as COGS
What is the cost of goods purchased
The document that is affected by Cost of Goods sold being wrong
What is the income statement
The selling price less any costs to make the goods ready for sale
What is Net realizable value
Gas stations, clothing companies and manufacturing facilities use this method of cost determination
What is AVERAGE
A business that is selling the goods that belong to another company
What is a consignee
Cost of goods available for sale / total units available for sale
What is the weighted average unit cost.
The kind of effect errors in one year have on the next
What are errors having reverse effects.
The number of days on average that the inventory is on hand before being sold
What is day sales in inventory
The owner of the goods that have been purchased but are being held by the company
What is the consumer
When Average produces higher profit
What is when prices are falling
Effects can be determined by this accounting equation
What is the basic accounting equation (A=L+OE)
When the value of inventory is lower than its cost, it is written down to that lower value
What is lower of cost and net realizable value
Inventory of a company that is held by another business
What is consignment
Remains the same for perpetual and periodic systems under FIFO
What is the Cost of Goods Sold and Ending Inventory
If the costs of goods sold are overstated in one period, this is the effect on the profit for the next accounting period
What is profit being UNDERSTATED
When prices are falling, this inventory method is more beneficial for profit
What is Average