Inventory Models Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following activities incur ordering costs?

Question 2 2. The _____ refers to the total dollar amount a business paid for the products it sold.

Question 3 3. Which of the following is NOT an element of inventory costs?

Question 4 4. Which goods in transit are counted in the merchandise inventory of the buyer as soon as the items are shipped?

Question 5 5. What do we call items that are taken from one business to another to be sold on a commission basis?

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Question 6 6. What is the cost of moving merchandise from one place to another called?

Question 7 7. Ken is looking through the basement of his ceramics store, and he finds three obsolete plates and a bowl that has been smashed into five pieces. Which of these goods could be counted in merchandise inventory? Why?

Question 8 8. The business that owns goods placed on consignment is called what?

Question 9 9. Which accounting term is used only to record the purchase cost of items that are intended to be resold?

Question 10 10. Shazam Electronics is a major retailer specializing in a large variety of computer chips. All of the chips have to be stored at a specific temperature, which is a significant expense to Shazam's monthly electric bill. Which of the following categories does this expense refer to?

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Question 11 11. Leno's Tux Boutique is in dire need of additional blue bow ties for the start of wedding season. He has to quickly order more for his inventory. Which of the following would NOT incur a shortage cost for the business?

Question 12 12. What do we call items that have been ordered by a business, but have not yet been received?

Question 13 13. What is the accounting equation for calculating the cost of purchasing inventory?

Question 14 14. What are items that are acquired by a distributor for the purpose of resale to a third party called?

Question 15 15. Which of the following accounting terms is a discount given by a merchant to a supplier for paying invoices on time?

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Question 16 16. Which accounting term refers to buying items that are meant to be resold to customers?

Inventory Models Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business 116: Quantitative Analysis  /  Business Courses
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