Which of the Following Is a Recommended Practice When Using

question 14

Multiple Choice

Which of the following is a recommended practice when using graphs to present quantitative data?

• A) Use the brightest available colors to draw the user's eye to good news and away from bad news
• B) Use pie charts to show trends in data
• C) Start the vertical axis at zero
• D) Use three-dimensional effects to make the visual appearance of numbers larger than their numerical values

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Definitions:

FIFO

"First In, First Out," an inventory valuation method assuming that the first items purchased are the first ones sold, affecting the cost of goods sold and ending inventory value.

Specific Identification

An accounting method used for inventory costing, where each item in inventory is identified and its cost is individually recorded.

LIFO

"Last In, First Out," a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Average Cost

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.