If the perpetual inventory system is used the Cost of Goods Sold is debited at the time of a sale.

If the periodic inventory system is used, no detail records of the inventory on hand are kept.

Which inventory costing method will give you the same value whether the periodic or perpetual system is used ?

If the purchase costs of items is constantly increasing, the inventory costing method (flow) that will minimize income taxes is -

The costing method (flow) where the value of the ending inventory is made up of the oldest (earliest) purchases is -

The costing method (flow) where the value of the ending inventory is made up of the most recent (latest) purchases is -

The Lower of Cost or Market Rule is an example of accountants applying the conservative principle to valuing inventory.

The difference between Cost of Goods Available For Sale and Cost of Goods Sold is -

The inventory method that requires a physical count of the goods in order to calculate the Cost Of Goods Sold is called the Perpetual Method.

When using the Average Cost Method, a new average cost is calculated when items are sold.

If Beginning Inventory = 15,500 , Purchases = 25,000 and Ending Inventory = 10,000 ; Cost Of Goods Sold is ?

The Specific Identification Costing Method would probably be used as the costing method for a -

Two methods often used to estimate the cost of inventory are the Retail Inventory Method and the Gross Profit Method.

The calculated Selling Price for a product that costs $10.00 and has a desired Gross Profit of 50% is -