Ellie Has Migraine Headaches on a Regular Basis

question 189

Multiple Choice

Ellie has migraine headaches on a regular basis. If she lies down as she feels a headache arising, she can prevent a migraine from developing. Her doctor prescribes a new medication that is 95 percent effective in preventing migraines. Ellie takes the medication but also continues to lie down when she feels a migraine coming on. Three months after he writes the prescription, the doctor asks her whether it has helped her. Ellie

• A)wouldn't know, since she lies down when she feels a headache developing.
• B)would probably say the medication works and she has not had a headache in three months.
• C)would probably tell the doctor she took the medication but doesn't think it works.
• D)wouldn't know because she is not a doctor.
• E)None of these response options makes sense.

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Definitions:

Specific Identification Method

An inventory valuation method that tracks the actual cost of each individual item of inventory.

Inventory Accounting

The process of valuing a company's inventory, including raw materials, work-in-progress, and finished goods.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold or used first.

Profits

The financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.