Match the Terms with the Definitions

question 81

Multiple Choice

Match the terms with the definitions.
-A method of estimating inventory in which a business's normal gross profit percentage is used to estimate the cost of goods sold and ending 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:

Given Event

An occurrence or outcome within a probability space that has a specified probability attached to it.

Independent Events

Two or more events whose outcomes do not affect each other, meaning the occurrence of one event does not change the probability of the other.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 1 indicates certainty.

Marginal Probability

The probability of an event occurring, irrespective of the outcomes of other variables.