To Diversify, an Engineer Working in an Electric Power-Generating Plant

question 181

Multiple Choice

To diversify, an engineer working in an electric power-generating plant should invest in:

• A) stocks of wind power-generating companies.
• B) stocks of his own company.
• C) a mutual fund that consists of only electric power-generating companies.
• D) nothing.

---

Definitions:

Perpetual Inventory System

A method of accounting that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.

Cost Of Goods Sold

The immediate expenses linked to manufacturing the products a company sells, encompassing the price of materials and the labor needed to produce the item.

Merchandise Sold

This represents the goods that have been sold and delivered to customers.

Defective Merchandise

Goods that fail to meet quality standards and are therefore returned, repaired, or sold at a discounted price.