A Decrease in the Demand for Pastry Chefs May Come

question 214

Multiple Choice

A decrease in the demand for pastry chefs may come about because of an increase in the:

• A)concern for healthy living.
• B)market wage rate for pastry chefs.
• C)productivity of pastry chefs.
• D)supply of other factors that pastry chefs use.

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Definitions:

Lower of Cost or Market

An accounting principle requiring inventory to be recorded at the lower of its original cost or its current market value.

Inventory Valuation

The method used to assign cost to inventory for the purposes of accounting, vital for determining cost of goods sold and ending inventory values.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal, used in assessing the value of inventory and receivables.

Replacement Cost

The cost to replace an asset or item at current market prices, without deduction for depreciation.