Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.
List A
1. Perpetual inventory system
2. Periodic inventory system
3. F.o.b. shipping point
4. Gross method
5. Net method 6 Cost index
7. F.o.b. destination
8. FIFO
9. LIFO
10. Consignment
11. Average cost
12. IRS conformity rule
List B
a. Legal title passes when goods are delivered to common carrier.
b. Goods are transferred to another company but title remains with transferor.
c. Purchase discounts not taken are included in inventory cost.
d. If LIFO is used for taxes, it must be used for financial reporting.
e. Assumes items sold are those acquired first.
f. Assumes items sold are those acquired last.
g. Purchase discounts not taken are considered interest expense.
h. Used to convert ending inventory at year-end cost to base year cost.
i. Continuously records changes in inventory.
j. Assumes items sold come from a mixture of goods acquired during the period.
k. Legal title passes when goods arrive at location.
I. Adjusts inventory at the end of the period.