Check your knowledge

Completed

Answer the following questions to see what you learned.

1.

What is the weighted average cost method?

It sums the receipt cost times quantity for all inventory receipts during the current period.

It assigns a cost to raw materials and components that you use in manufacturing and sell to customers.

It's a perpetual costing method that reevaluates the cost whenever you post a new purchase receipt.

It uses the inventory that you received last to satisfy outbound requirements.

2.

Which costing method produces the smallest profits?

FIFO

Weighted average

Standard cost

LIFO

3.

In which module can you perform the inventory close process?

Accounts payable

Accounts receivable

Inventory management

Cash and bank management

You must answer all questions before checking your work.