1. Under the concept of FOB shipping point? a. Ownership is transferred to the buyer upon the receipt of the goods purchased. b. Ownership is transferred to the buyer upon the shipment of the goods purchased. c. Ownership remains with the seller upon the shipment of the goods purchased. d. Ownership remains with the seller even if the buyer already received the goods. 2. Goods out on consignment must be included in inventory of? a. The consignor. b. The consignee. c. Both the consignor and consignee. d. Neither the consignor nor consignee. 3. Which of the following inventory cost flow method reports most closely the current cost of inventory? a. Specific identification method. b. FIFO method. c. Weighted average method. d. Moving average method. 4. Which of the following is not included in the initial measurement of inventories? a. Import duties. b. Irrecoverable purchase taxes. c. Recoverable purchase taxes. d. Freight, handling, and other directly attributable costs. 5. Which of the following should not be included in determining the cost of inventory? a. Commission paid to a broker who arranged the importation of the inventory. b. Interest on loan taken out specifically for the purpose of purchasing inventory items. c. Depreciation of factory machine. d. Wages of factory workers