Which of the Following Statements Is Correct with Respect to Inventories

question 86

Multiple Choice

Which of the following statements is correct with respect to inventories?

• A) The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.
• B) It is generally good business management to sell the most recently acquired goods first.
• C) Under FIFO the ending inventory is based on the latest units purchased.
• D) FIFO seldom coincides with the actual physical flow of inventory.

Identify and differentiate between types of reinforcers.

Understand the role and application of reinforcement schedules in modifying behavior.

Recognize the effects of reinforcement (positive and negative) on behavior.

Understand the concept of intermittent reinforcement and its impact on behavior extinction.

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Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Current Ratio

A financial metric assessing a firm's capacity to settle debts due within a year by comparing its current assets to its current liabilities.

Vertical Analysis

The presentation of a company’s financial statements in common-size form.