Term
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Definition
| The general ledger account that is supported by a subsidary ledger. |
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Term
| Cost of goods available for sale. |
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Definition
| Beginning inventory plus cost of goods purchased. |
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Term
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Definition
| Cost of goods available for sale minus ending inventory. |
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Term
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Definition
| An inventory costing method that assigns the most recent cost to ending inventory. |
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Term
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Definition
| A manufacturers inventory that is complete and ready for sale. |
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Term
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Definition
| Shipping terms where the buyer takes title of the merchandise when the goods reach their destination. |
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Term
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Definition
| Shipping terms where the buyer takes title of the merchandise when the goods are presented at the shipping point. |
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Term
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Definition
| A measure of the number of items of inventory is sold during the period. |
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Term
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Definition
| The IRS requirement that LIFO is used on the tax return, it must also be used in reporting income to stockholders. |
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Term
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Definition
The result of selling more units than were purchased during the period, which can have negative tax consequences if the company is using LIFO. |
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Term
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Definition
| An inventory method that assigns the most recent costs to cost of goods sold. |
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Term
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Definition
| The account wholesailers and retailers use to report held inventory for resale. |
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Term
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Definition
| Sales revenue less sales return and allowances and sales discount. |
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Term
| Number of days' sales in inventory |
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Definition
| A measure of how long it takes to sell inventory. |
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Term
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Definition
| System in which the inventory account is updated only at the end of the period. |
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Term
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Definition
| System in which the inventory account is increased at the time of each purchase and decreased at the time of each sale. |
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Term
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Definition
| A manufacturers inventory used to account for the materials directly used to make a finished good. |
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Term
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Definition
| A contra-revenue account used to record discounts given customers early payment of their accounts |
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Term
| Sales Return & Allowances |
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Definition
| A contra-revenue account used to record both refunds to their customers and reductions of their accounts. |
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Term
| Specific identification method |
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Definition
| An inventory costing method that relies on matching unit costs with the actual units sold. |
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Term
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Definition
| The detail for a number of items that collectivley make up a single general ledger account. |
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Term
| Weighted Average Cost Method |
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Definition
| An inventory costing method that assigns the same unit cost to all units available for sale during the period. |
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Term
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Definition
| A manufacturers inventory used to account for the cost of unfinished products. |
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