ACCT 101 Chapter 6 Vocabulary

a business should use the same accounting methods and procedures from period to period.

An inventory costing method based on the specific cost of particular units of inventory

inventory costing method based on weighted-average cost per unit of inventory. It's calculated after each purchase

The total cost spent on inventory that was available to be sold during a period = cost of goods available for sale

business's financial statements must report enough information for outsiders to make knowledgeable decisions about them

a method of approximating the flow of inventory costs to determine the amount of COGS and ending merchandise inventory

An inventory costing method in which the last costs into inventory are the first costs out to cost of goods sold

a company must perform strictly proper accounting only for items significant to the business's financial situation

rule that merchandise inventory should be reported at the lower of its historical cost or its market value

Measures the average number of days that inventory is held by a company

An inventory costing method in which the first costs into inventory are the first costs out to cost of goods sold.

a business should report the least favorable figures in the financial statements

Measures the number of times a company sells its average level of merchandise inventory during a period