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1. How are manufacturing inventories different than those of a merchandiser?
2. What security measures may be used by retailers to protect merchandise inventory from customer theft?
3. Which inventory system (perpetual or periodic) provides the more effective means of controlling inventories? Why?
4. Before inventory purchases are recorded, the receiving report should be reconciled to what documents?
5. Why is it important to periodically take a physical inventory if the perpetual system is used?
6. Do the terms fifo and lifo refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.
7. Does the term last-in in the lifo method mean that the items in the inventory are assumed to be the most recent (last) acquisitions? Explain.
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