Which of the Following Statements Is Correct with Respect to Inventories

question 86

Multiple Choice

Which of the following statements is correct with respect to inventories?

• A) The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.
• B) It is generally good business management to sell the most recently acquired goods first.
• C) Under FIFO the ending inventory is based on the latest units purchased.
• D) FIFO seldom coincides with the actual physical flow of inventory.

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Definitions:

Site Selection

The process of determining the best location for a business or facility based on various factors like demographics, costs, and regulatory environment.

Distribution Channel

The series of intermediaries a product passes through when going from producer to consumer.

Direct

Pertains to a straightforward or unmediated approach in marketing, selling, or communication, often involving direct interaction with customers or clients.

Site Selection

The process of choosing a new location for a business or facility based on criteria such as cost, logistics, market demand, and legal considerations.