Which of the Following Is Not a Benefit of Using

question 27

Multiple Choice

Which of the following is not a benefit of using models in decision making?

• A)They provide a standardized format for analyzing a problem.
• B)They serve as a consistent tool for evaluation.
• C)They are easy to use and less expensive than dealing with the actual situation.
• D)They force the decision maker to take into account qualitative issues such as personalities and emotions.
• E)They offer insights into fundamental issues at play in a decision-making setting.

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Definitions:

FIFO Basis

Stands for "First In, First Out," an inventory valuation method where the costs of the earliest goods purchased or produced are the first to be recognized in determining cost of goods sold.

Perpetual Inventory System

A method where inventory quantities and cost of goods sold amounts are updated continuously as sales occur and purchases are made.

Lower-of-cost-or-market

An accounting principle that values inventory at the lower of its historical cost or current market price.

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average of all units purchased.