21.Goods held on consignment should be included in the consignee’s ending inventory.
22.In accounting for inventory, the assumed cost flow need not match the physical goods flow.
23.Inventory methods such as LIFO and FIFO deal more with cost flow than with goods flow.
24.Costs incurred in storing inventory usually are included in inventory costs.
25.Freight charges associated with the purchase of inventory normally are not included in inventory cost.
26.Realizable value is the amount for which an inventory item can be resold.
27.The lower-of-cost-or-market rule implies that it is unrealistic to carry inventory at a cost that is in excess of its market value.
28.When the cost of inventory is written down due to a market decline, a loss must be recorded.
29.Merchandise inventory is valued on the balance sheet at the expected resale price.
30.The specific identification method identifies the cost of each item in ending inventory.
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