56. I beg your pardon of the following inventory valuation methods is only an estimate of yes, really costs? A. The sleeve method. B. The gross profit method. C. Both retail and gross profit approaches are just estimations. D. No the retail nor the pistol profit approaches are estimations.

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57. In a duration of increasing prices, a company is most likely to usage the specific identification an approach of pricing list if: A. Every item in the inventory is unique. B. Management wants the same unit price assigned come items sold and items staying in inventory. C. Management’s major objective is come minimize revenue taxes. D. Monitoring wants the company’s earnings statement to show the highest feasible amounts of gross profit and net income.

58. During periods the inflation which technique will yield the smallest finishing inventory and the largest cost of products sold? A. LIFO. B. FIFO. C. Average. D. No one of the above.

59. In a period of increasing prices, a agency is most likely to usage the FIFO an approach of pricing list if: A. Every item in the inventory is unique. B. Monitoring wants the very same unit expense assigned come items sold and also items remaining in inventory. C. Management’s major objective is to minimize income taxes. D. Management wants the company’s revenue statement to indicate the highest feasible amounts of gun profit and net income.

60. Which of the following inventory expense flow presumptions is no in accord v the physical flow of goods in many businesses? A. LIFO. B. FIFO. C. Specific identification. D. All three need to be in accord v the physical circulation of merchandise.

61. A store that sell expensive custom-made jewelry is most most likely to recognize its expense of goods sold using: A. Details identification. B. Average cost. C. First-in, first-out. D. Last-in, last-out.

62. A firm with a fluid inventory will have: A. A high perform turnover and a high average variety of days to sell inventory. B. A high perform turnover and also a short average number of days to offer inventory. C. A short inventory turnover and also a high average variety of days to sell inventory. D. A short inventory turnover and a low average number of days to offer inventory.

63. The an option of perform valuation an approach can help attain each the the adhering to independent goals, except: A. Reduce expense of merchandise got from suppliers. B. Boost reported network income. C. Boost the inventory turnover rate. D. Alleviate the amount of earnings taxes owed.

64. Through respect to the valuation that inventory and also measurement the the price of goods sold, the principle of consistency means that the same method should it is in applied: A. In successive bookkeeping periods. B. By all companies in a offered industry. C. Come all assets in the inventory. D. In financial statements and also income taxation returns.

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65. In a manufacturing company, the “just-in-time” principle of inventory management is finest illustrated by: A. Receiving deliveries of materials from providers just prior to the materials are provided in the manufacturing process. B. Completing the manufacturing process just before the deadline created by the customer. C. One automated manufacturing facility that reduces production time listed below that of other companies in the industry. D. Selling finished products prior to they go the end of style.