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Following are terms relating to inventory concepts and procedures along with descriptions of those terms.
Match each term, 1 through 14, with the best description a through n.
| | Terms | Description of Terms |
| Answerabcdefghijklmn | 1. Free on board shipping point | a. Requires each inventory item to be distinguishable from another |
| Answerabcdefghijklmn | 2. Free on board destination | b. Occurs when the seller of inventory agrees to buy back the inventory at set terms |
| Answerabcdefghijklmn | 3. Gross methodpurchase discounts | c. Purchase discounts lost are treated as a finance charge |
| Answerabcdefghijklmn | 4. Net method-purchase discounts | d. Ownership passes when the seller transfers goods to carrier |
| Answerabcdefghijklmn | 5. Consignee | e. An average inventory cost is computed based upon an entire period |
| Answerabcdefghijklmn | 6. Consignor | f. Purchase discounts are only recorded if taken |
| Answerabcdefghijklmn | 7. Perpetual inventory system | g. Elimination of prior periods inventory layer |
| Answerabcdefghijklmn | 8. Periodic inventory system | h. Owner of inventory held at a separate location |
| Answerabcdefghijklmn | 9. Specific Identification | i. Requires a physical count of inventory in order to determine COGS |
| Answerabcdefghijklmn | 10. Average Cost method | j. Requires average inventory calculations throughout the period |
| Answerabcdefghijklmn | 11. Moving Average method | k. Measures the difference between inventory valued at FIFO vs. LIFO |
| Answerabcdefghijklmn | 12. Repurchase agreement | l. Ownership passes when the buyer receives goods from carrier |
| Answerabcdefghijklmn | 13. LIFO reserve | m. Requires a physical inventory to verify inventory balances |
| Answerabcdefghijklmn | 14. LIFO liquidation | n. Acts as a sales agent to sell merchandise |
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