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12 Cards in this Set
- Front
- Back
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What are finished goods, work in process, and raw materials.
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Manufacturing companies classify inventory in three categories...
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What is finished goods inventory?
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manufactured items that are ready for sale.
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What is work in process?
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portion of manufactured items that has begun the production process but is not yet complete.
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What is raw materials?
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the basic goods that will be used in production but have not yet been placed into production.
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What is cosigned goods?
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Merchandise that is not owned by the party in possession of the goods.
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What is just-in time (JIT) inventory?
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Inventory system in which companies manufacture or purchase goods just in time for use.
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What is FOB (free on board) destination?
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Freight terms indicating that ownership of goods remains with the seller until the goods reach the buyer.
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What is FOB (free on board) shipping point?
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Freight terms indicating that ownership of goods passes to the buyer when the public carrier accepts the goods from the seller.
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What is specific identification method?
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An actual physical flow costing method in which items sold and items still in inventory are specifically costed to arrive at cost of goods sold and ending inventory.
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What are consigned goods?
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Goods held for sale by one party although ownership of the goods is retained by another party.
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What is FIFO (first-in, first-out) method?
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an inventory costing method that assumes that the earliest goods purchased are the first to be sold.
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What is LIFO (last-in, first-out) method?
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an inventory costing method that assumes that the latest units purchased are the first to be sold.
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