Chapter 5

Method to assign inventory cost to sales; the cost of available-for-sale units divided by the number of units available to determine per unit cost to each sale that is then multiplied  by the units sold to yield the cost of that sale.           pg 210

Principle that prescribes the less optimistic estimate when two estimates are about equally likely.    pg 214

Receiver of goods owned by another who holds them for purposes of selling them for the owner.     pg 204

Owner of goods who ships them to another party who will sell them for the owner.  pg 204

Principle that prescribes use of the same accounting method(s) over time so that financial statements are comparable across periods.    pg 213

Estimate of number of days needed to convert inventory into receivables or cash; equals ending inventory divided by COGS and then multiplied by 365; also called days stock on hand.       pg