Ceteris Paribus Means

question 62

Multiple Choice

Ceteris paribus means:

• A) an association of variables.
• B) all other things remain constant.
• C) a cause and effect relationship.
• D) considering the influences of other variables.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or consumed first.

Inventory Costing Methods

The techniques used to value and account for inventory, including first-in-first-out (FIFO), last-in-first-out (LIFO), and weighted average cost methods.

Perpetual System

An inventory management method where inventory quantities and cost of goods sold are updated continuously with each sale or purchase.

Periodic System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals to determine the ending inventory balance and the cost of goods sold.