A Company That Compiles and Uses Large Amounts of Data

question 34

Multiple Choice

A company that compiles and uses large amounts of data to understand its customers is likely to have a ________ to store and process its data.

• A) distribution center
• B) data warehouse
• C) competitive intelligence center
• D) custom research project
• E) marketing research department

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Definitions:

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributed to the production of the goods sold by a company, including material and labor costs, but excluding indirect expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting cost of goods sold.

Perpetual Inventory Account

An accounting method that records inventory purchases and sales in real time, providing a continuously updated inventory balance.

FIFO

"First In, First Out", an inventory valuation method where the costs of the oldest inventory items are the first to be recognized in determining cost of goods sold.