Reference no: EM132953399

Problem 1: The cost of goods available for sale includes

A) just beginning inventory.

B) beginning inventory less ending inventory.

C) beginning inventory plus purchases less ending inventory.

D) beginning inventory plus purchases.

Problem 2: Which term describes a situation where the buyer is responsible for paying shipping and other costs incurred while goods are in transit from the seller's premise to the buyer's premises.

A) FOB shipping

B) FOB destination

C) FOB purchasing

3) FOB receiving

Problem 3: Effective inventory management would have one person place the order for new inventory, a second person check it against the purchase order when it arrives, and a third person record the receipt of inventory in the accounting records. The purpose of this system is

A) to reduce spoilage.

B) to reduce storage costs.

C) to guard against stock-outs.

D) to guard against internal theft and collusion.