Exhibit 20-2 Refer to Exhibit 20-2

question 122

Multiple Choice

Exhibit 20-2 Refer to Exhibit 20-2. Total utility for all five oranges is

• A)70 utils.
• B)12 utils.
• C)68 utils.
• D)80 utils.
• E)40 utils.

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Definitions:

Inventory Costing Method

A method used to assign costs to inventory items, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or weighted average cost.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold first, affecting the cost of goods sold and inventory value.

FIFO

"First In, First Out," a method of inventory valuation where the earliest acquired goods are sold first.

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.