Guidelines (Rules-Of-Thumb)are General Standards of Comparison Developed From

question 7

Multiple Choice

Guidelines (rules-of-thumb) are general standards of comparison developed from:

• A)Industry statistics from the government.
• B)Past experience.
• C)Analysis of competitors.
• D)Relations between financial items.
• E)Dun and Bradstreet.

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Definitions:

Cost of Goods Sold

A financial metric that represents the direct costs attributable to the production of goods sold by a company.

Inventory

The cumulative quantity of products and materials a company possesses for the purpose of selling or utilizing in manufacturing processes.

LIFO

Last In, First Out, an inventory valuation method where the last items added to inventory are the first ones considered sold.

Inventory Balance

The total value of all inventory items held by a company at the end of a reporting period, including raw materials, work-in-progress, and finished goods.