Which of the Following Is Most Likely to Violate a FIFO

question 74

Multiple Choice

Which of the following is most likely to violate a FIFO queue?

• A) supermarket with no express lanes
• B) car repair garage
• C) emergency room
• D) fast-food restaurant
• E) coffee shop

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Definitions:

Inventory Write-down

A reduction in the value of inventory to reflect its current market value below its listed cost.

Net Income

The net income of a company once all costs and taxes are deducted from the total earnings.

Inventory Valuation

The method used to assign cost or value to inventory, impacting how cost of goods sold and inventory are reported.

LIFO

An inventory valuation method that assumes the most recently produced items are the first to be sold, with costs calculated accordingly.