accounting

Using a perpetual inventory system, when a company records a sale of merchandise, it must also record

1. A decrease in its inventory 2.cost of goods sold which will be reported on the income statement

The goals of inventory managers include-------

1. Making sure that inventory quality meets customer expectations 2. Having enough inventory on hand to meet customer demand 3. Keeping the cost of buying and storing inventory as low as possible

Which of the following are manufacturing inventory cost?

1. factory overhead 2. direct labor 3. direct materials

The definition of inventory includes which of the following items

1. items used currently in the production of goods to be sold 2.items currently in production for future sale 3. items held for resale

In a perpetual inventory system, inventory is initially recorded at

Cost

inventory is a _______________ asset because it normally is used or converted to cash within one year or the next operating cycle

Current

Net sales revenue minus cost of goods sold is

Gross profit

Items held for sale in the normal course of business are referred to as ----------------

Inventory

acme company's balance sheet shows three invntory accounts--raw materials, work in process, and finished goods. Acme company must be a _____________

Manufacturer

Gross profit is

Net sales minus Cost of goods sold

Surf shack corp buys surfboards, wetsuits, and surf wax from rip to shreds, inc for sale to consumers. What type of company is surfshack corporation

Retail merchandiser

Service companies

sell service rather than physical goods

merchandising companies

sells goods that have been obtained from a supplier

manufacturing companies

sells goods that they have made themselves