1.
Inventory costing method based on the
average cost of inventory during the
period.
2.
Inventory costing method: The first costs
into the inventory are the first costs out
to cost of goods sold. Ending inventory is
based on the costs of the most recent
purchases.
3.
Inventory costing method: The last costs
into inventory are the first costs out to
cost of goods sold. Leaves the oldest
costs in ending inventory.
4.
A company must perform strictly proper
accounting only for items that are
significant to the business’s financial
situations.
5.
A business should use the same
accounting methods and procedures from
period to period.
6.
Reporting the least favorable figures in
the financial statements.
7.
A way to estimate inventory on the basis
of the cost-of-goods-sold model.
Beginning inventory + Net purchases =
Cost of goods available for sale. Cost of
goods available for sale – Cost of goods
sold = Ending Inventory.
8.
A business should use the same
accounting methods and procedures from
period to period.
9.
Rule that an asset should b reported in
the financial statements at whichever is
lower – its historical cost or its market
value.
10. Inventory costing method based on the
specific cost of particular units of
inventory.
Directions:
Leave the vocab to the
right. Move the colored
vocab text box next to
the correct definition
(click on the border to
move it). Have your
teacher check it off on
your screen. Print when
it’s correct to use as
another study guide.
Delete this box 
Specific Unit Cost
Method
Average-Cost Method
Disclosure Principle
Gross Profit Method
First-in, Last-Out
Inventory Method
Consistency Principle
Lower of Cost or
Market Rule
Materiality Concept
First-in, First-Out
Inventory Method
Conservatism