BAT 4M
Unit 3 Activity 4
Unit 3 Test
1. Bajwa Inc. always has its annual inventory count completed by employees other than
those who responsible for storing and maintaining the inventory on a day-to-day basis.
This is an example of what type of internal control procedure?
a. Authorization
b. Documentation
c. Independent verification
d. Segregation of duties
2. The specific identification method of costing inventories is a good choice when the
a. physical flow of units cannot be determined.
b. company sells large quantities of relatively low cost homogeneous items.
c. company sells large quantities of relatively low cost heterogeneous items.
d. company sells a limited quantity of high-unit cost items.
3. Two companies report the same cost of goods available for sale but each employs a
different inventory costing method. If the price of goods has increased during the
period, then the company using
a. LIFO will have the highest ending inv