Jill Is Writing a Business Plan for a Small Home

question 63

Multiple Choice

Jill is writing a business plan for a small home based operation.If well written,the business plan will assist her in determining if

• A)the business aligns with personal goals.
• B)an investor would be a perfect fit for the proposed company.
• C)suppliers can be found for the operation.
• D)outsiders can be made into insiders.

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Definitions:

FIFO

"First-In, First-Out," an inventory valuation method where the costs of the earliest items purchased or produced are the first to be expensed.

Cost Of Goods Available

The total cost of inventory that a company has available to sell at any given time, calculated by adding the beginning inventory to the cost of goods purchased or manufactured.

FOB Destination

Freight terms indicating that the seller places the goods free on board to the buyer’s place of business, and the seller pays the freight.

Physical Count

An inventory audit practice where a company manually counts all of its inventory at a certain point in time to verify stock levels and values.