A Method of Allocating Merchandise Cost That Assigns the Most

question 42

Multiple Choice

A method of allocating merchandise cost that assigns the most recent purchased costs to the ending inventory shown on the balance sheet is called the

• A) last-in, first-out method.
• B) first-in, first-out method.
• C) specific identification method.
• D) weighted-average method.

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Definitions:

Division Of Labor

The breaking down of work into a number of separate tasks to be performed by different workers, increasing efficiency and productivity.

Hierarchy Of Authority

A system of organization where entities are ranked according to levels of power and control, from highest to lowest.

Mechanistic And Organic

Describes two contrasting organizational structures; mechanistic being highly structured and hierarchical, organic being more flexible and adaptable.

Authority Structure

The framework that delineates the lines of authority, communication, and responsibility within an organization.