When Stores Have Only a Few Items Out on Display-As

question 65

Multiple Choice

When stores have only a few items out on display-as opposed to piles of items-the merchandise appears to be more valuable. This is probably due to the ____ principle. ​

• A)reciprocity ​
• B)consistency
• C)commitment
• D)scarcity

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently acquired items are recorded as sold first.

Retail Inventory Method

An accounting method used to estimate inventory cost for retail businesses by applying a constant gross margin percentage.

Gross Profit Ratio

A financial metric that measures a company's gross profit as a percentage of its revenues, indicating efficiency in using labor and supplies.

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any cost associated with the sale or disposal of the item.