Discuss Two Indicators That Can Be Found in an Analysis

question 3

Essay

Discuss two indicators that can be found in an analysis that suggest multicollinearity is present.

Understand the distinctions and uses of average and marginal propensity to save and consume.

Identify the effects of computerization and investment decisions on inventory levels.

Comprehend the significance of ownership and control in corporate structures.

Assess the influence of investment variations on economic cycles and recessions.

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Definitions:

Perpetual

An inventory system in which the inventory records are updated continuously to reflect purchases, sales, and inventory on hand in real time.

LIFO Method

An inventory costing method where the last items of inventory purchased are the first ones sold, used to calculate cost of goods sold and ending inventory.

Inventory Ledger

A detailed record that tracks the quantities and costs of all types of inventory a company has in stock during a specific period.

Weighted-Average Method

Valuing of inventory where each item is assigned the same unit cost. This unit cost is found by dividing the cost of goods available for sale by the total number of units for sale.