An Inventory Pricing Procedure in Which the Oldest Costs Incurred

question 51

Multiple Choice

An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is

• A)FIFO.
• B)moving average.
• C)base stock.
• D)weighted-average.

---

Definitions:

Government Failure

Inefficiencies in resource allocation caused by problems in the operation of the public sector (government). Specific examples include the principal-agent problem, the special-interest effect, the collective-action problem, rent seeking, and political corruption.

Special-Interest Effect

The phenomenon where a small group gains substantially through an action or policy while the larger population bears the cost, often seen in political lobbying.

Bureaucratic Inefficiency

The delay and ineffectiveness often experienced within organizations, especially large ones, due to complex procedures and red tape.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large as a result of an economic activity.