John Wants to Start His Own Pet Shop and Has

question 56

Multiple Choice

John wants to start his own pet shop and has run an ad for the post of shop assistant.He hired the first candidate he interviewed without reviewing the remaining applications because the first one fit the given criteria he had listed in the job ad.This is an example of ________.

• A)confirmation bias
• B)risk
• C)bias
• D)satisficing
• E)heuristics

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Definitions:

Inventory Valuation

The method of calculating the cost associated with inventory at the end of an accounting period to determine the cost of goods sold and inventory on hand.

LIFO Perpetual Inventory System

An inventory management method where the last items added to inventory are assumed to be the first sold, continuously updated.

Ending Inventory

The amount of goods available for sale at the finis of an accounting cycle.

Perpetual LIFO Method

The perpetual LIFO (Last In, First Out) method is an accounting technique for inventory valuation where goods are assumed to be sold in the reverse order they were acquired, continuously adjusting inventory value.