Many Companies Keep a Continuously Updated List of Inventory Levels

question 16

Multiple Choice

Many companies keep a continuously updated list of inventory levels, orders, sales, and receipts. What is this type of inventory called?

• A) month-to-month inventory
• B) just-in-time inventory
• C) coordinating inventory
• D) perpetual inventory

Understand the concepts and characteristics of different types of mutual funds.

Identify the costs and fees associated with mutual funds, including loads, 12b-1 fees, and expense ratios.

Understand the calculation of net asset value (NAV) and how it affects mutual fund transactions.

Recognize the tax implications and potential tax liabilities associated with investing in mutual funds.

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Definitions:

FIFO Method

The First-In, First-Out method is an inventory valuation technique where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.

Earliest Units

The first units produced or acquired in a period, which are often accounted for differently in inventory costing methods.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials and labor.

Perpetual Inventory System

An inventory system under which the company keeps detailed records of the cost of each inventory purchase and sale, and the records continuously show the inventory that should be on hand.