The Inventory Valuation Method That Has the Advantages of Assigning

question 103

Multiple Choice

The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost,and also mimics the actual flow of goods for most businesses is:

• A)FIFO.
• B)Weighted average.
• C)LIFO.
• D)Specific identification.
• E)Lower of cost or market.

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Definitions:

Clock Speed

The speed at which a processor executes instructions, typically measured in gigahertz (GHz).

Physical Memory

refers to the actual RAM (Random Access Memory) installed in a computer that is used to store data temporarily while the computer is running.

RAM

Random Access Memory, a type of computer memory that is used to store working data and machine code currently being used.

Volatile Storage

Memory that requires power to maintain the stored information; it loses its contents when the system is turned off.