A Method of Valuing Inventory Based on the Assumption That

question 108

Multiple Choice

A method of valuing inventory based on the assumption that the newest goods will be sold first is called the:

• A)LIFO method.
• B)average cost method.
• C)specific identification method.
• D)FIFO method.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time.

Budget Line Equation

An economic model that represents all combinations of goods and services that a consumer may purchase given current prices within their income level.

Entertainment Budget

An estimate of the money allocated for leisure and entertainment activities within a certain period.

Electronic Matrix

A spreadsheet.