Purpose: (L.O. 1 thru 8) This exercise will quiz you about terminology used in this chapter.
A list of accounting terms with which you should be familiar appears below.
|Average-cost method||**Gross profit method|
|Consigned goods||Just-in time (JIT) inventory method|
|Consistency principle||Last-in, first out (LIFO) method|
|Current replacement cost||Lower of cost or market (LCM) basis|
|Days in inventory||Raw materials|
|Finished goods inventory||**Retail inventory method|
|First-in, first-out (FIFO) method||Specific identification method|
|FOB (free on board) destination||Weighted-average unit cost|
|FOB (free on board) shipping point||Work in process|
**These items appear in Appendix 6B in the text.
For each item below, enter in the blank the term that is described.