. e Matching Terms Relating to Inventory Concepts and Procedures with their Descriptions 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 1. Free on board shipping point a. Requires each inventory item to be distinguishable from another 2. Free on board destination b. Occurs when the seller of inventory agrees to buy back the inventory at set terms 3. Gross method-purchase discounts c Purchase discounts lost are treated as a finance charge 4. Net method-purchase discounts d. Ownership passes when the seller transfers goods to carrier 5. Consignee e. An average inventory cost is computed based upon an entire period 6. Consignor Purchase discounts are only recorded if taken 7. Perpetual inventory system g. Elimination of prior period's inventory layer 8. Periodic inventory system h. Owner of inventory held at a separate location 9. Specific Identification Requires a physical count of inventory in order to determine COGS 10. Average Cost method . Requires average inventory calculations throughout the period 11. Moving Average method k Measures the difference between inventory valued at FIFO vs. LIFO 12. Repurchase agreement LOwnership passes when the buyer receives goods from carrier 13. LIFO reserve m. Requires a physical inventory to verify inventory balances 14. LIFO liquidation n Acts as a sales agent to sell merchandise Previous Save Answers