A Contingency Is an Event or Problem That Could Occur

question 16

True/False

A contingency is an event or problem that could occur and that must be planned for by having people and resources in place to deal with it.

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Definitions:

FIFO Perpetual

An inventory valuation method where the first items purchased (First In) are the first ones to be used or sold (First Out) on a continuous basis.

LIFO Perpetual

A method of inventory valuation which assumes that the last items placed in inventory are the first ones sold, applied continuously throughout the accounting period.

Weighted Average

This is a calculation method that takes into account the varying degrees of importance of the numbers in a data set, giving different weights to some of the data points.

Moving Average

A calculation used to analyze data points by creating a series of averages of different subsets of the full data set.