SELF ASSESSMENT ON INVENTORY VALUATION Activity 1.1

1.1 The method that is appropriate for very expensive, individually recognisable item is the …… method

1.2.  The method that assumes that the older stock is sold first is the …. Method

1.3 The method that divides the cost of goods available for sale by the number of units is the … method.

1.4  This method assumes that stock is sold in order of date purchased

1.5 This method of stock valuation assigns a unique or individual value to each stock item

1.6 This system ensures that the cost of sale is calculated at the point of sale

1.7 This stock system is more suited for low-valued goods that are purchased in bulk.

1.8 Merchandise purchased is recorded as an —– to the business under the perpetual inventory system

1.9 cost of sale is usually calculated at the end of the financial year in the — inventory system

1.10 The net sale = sales less——

1.11 The net purchased = purchase less—–

1.12 Gross profit divided by the cost of sale x 100 is used to get the

1.13 In the perpetual inventory system, the carriage on purchase is recorded as

1.14 When businesses change from FIFO to weighted-average method of stock valuation, the gross profit will…. If prices of stock purchased during the year were always increasing

1.15 When changing from one inventory valuation method to another, the gross profit will change because the value of—— changes