In Negotiating a Contract with a Commercial Storage Company for Storage

question 1633

Multiple Choice

In negotiating a contract with a commercial storage company for storage of inactive records, what would be the most important issue to clarify in writing?

• A) who completes the list of what records are to be stored
• B) what are the billing terms
• C) who will purge inactive files for transfer
• D) confidentiality policies and liability concerns

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Definitions:

FIFO Costing

First-In, First-Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company, including materials and labor expenses.

Ending Inventory

The total value of goods available for sale at the end of an accounting period after accounting for purchases and sales.