Many Companies Keep a Continuously Updated List of Inventory Levels

question 1

Multiple Choice

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts.This is called a(n) _____ inventory.

• A)perpetual
• B)just-in-time
• C)month-to-month
• D)coordinating
• E)all-encompassing

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the goods purchased last are the first ones to be used or sold.

Gross Profit

The financial metric representing the difference between sales revenue and the cost of goods sold (COGS), before deducting overhead, payroll, taxes, and interest payments.

Ending Inventory

Merchandise value set for sale at an accounting period's end.

Safeguarding Inventory

Safeguarding inventory involves implementing security measures and inventory management practices to protect goods from theft, damage, or loss.