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:

Labour Standards

Regulations and criteria relating to the treatment, pay, and conditions of work for employees.

Labour Content

The total amount of work or effort, measured in hours or costs, required to produce a good or service.

Staffing Needs

The requirements or demand for staff within an organization to perform necessary jobs and roles.

Standard Time

The established amount of time allowed for the completion of a specific task, based on average speed and efficiency.