Match the Terms with the Definitions

question 72

Multiple Choice

Match the terms with the definitions.
-A method of allocating merchandise cost which assumes that the first goods purchased were the first goods sold and, therefore, that the latest goods purchased remain in inventory.

• A)average cost
• B)conservatism
• C)perpetual inventory system
• D)market value
• E)consignor
• F)consistency
• G)cost
• H)first-in, first-out method
• I)gross profit method
• J)last-in, first-out method
• K)inventory sheet

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Definitions:

Broad-Based Stock Option

A compensation strategy where companies offer employees stock options as a part of their wage package, aiming to align the interests of employees and shareholders.

Performance Measures

Quantitative indicators used to assess how well an individual, organization, or system is performing against expected objectives.

Strategic Business Unit

A division or unit within a larger company that focuses on a specific market segment or product line, operating with its own strategy and objectives.

Merit Pay

A salary increase awarded to employees based on their job performance, acting as a motivational tool by rewarding high performers.