In an Attempt to Reduce Poaching of Elephant Tusks for Ivory

question 108

Multiple Choice

In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory.Economists tend to point out that

• A)poaching can be reduced with price supports for ivory.
• B)the supply of ivory has fallen, leading to an increase in price and reward for poaching.
• C)burning ivory decreases demand, leading to lower prices and reward for poaching.
• D)the demand for ivory is higher, leading to an increase in price and reward for poaching.
• E)burning ivory raises demand, and controlled prices will lead to even greater poaching.

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Definitions:

FIFO Method

An inventory valuation method that assumes the first items purchased (First-In) are the first ones sold (First-Out), affecting the cost of goods sold and inventory valuation.

Cost Reconciliation

The process of verifying the cost of goods sold by comparing the beginning and ending inventories, plus purchases, with the total goods available for sale.

Work in Process Inventory

This represents the cost of unfinished goods in the manufacturing process at a certain point in time.

FIFO Method

FIFO Method, an acronym for "First In, First Out," is an inventory valuation method where goods purchased or produced first are sold or used first.