Why Didn't the "Plants in Operation" Curve in the Diagram

question 21

Multiple Choice

Why didn't the "plants in operation" curve in the diagram increase to the same level that the "plants on order" curve peaked?

• A) Because of the increased concerns about reactor safety and waste disposal
• B) Because some people were still supportive of nuclear power
• C) Because nuclear power does not contribute to the greenhouse effect
• D) Because there is a lag time between ordering and operating a nuclear plant
• E) Because many utilities cancelled their orders

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Definitions:

LIFO Periodic Inventory Method

An inventory valuation method where the last items purchased are the first items considered sold during a given period, calculated periodically.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before any adjustments for cost of sales.

Perpetual Inventory System

A bookkeeping approach that instantly logs the sale or acquisition of stock using computerized point-of-sale systems and enterprise asset management programs.

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods produced or acquired first are sold, used, or disposed of first.