An Agent May Not Engage in Inappropriate Behavior That Reflects

question 41

True/False

An agent may not engage in inappropriate behavior that reflects badly on the principal,even if the agent is off duty.

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Definitions:

Average Cost Method

An inventory valuation method wherein the cost of goods sold and ending inventory is determined by taking the weighted average of all purchases.

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts occur at specific intervals, such as monthly or yearly, as opposed to continuously.

Inventory Cost

The total cost associated with buying and preparing items for sale, including purchase prices, shipping, handling, and storage.

Perpetual Inventory Account

A method of recording inventory that updates inventory records in real-time with every transaction, sale, or purchase.