A Method of Valuing Inventory Based on the Assumption That

question 61

Multiple Choice

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

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

Understand the impact of organizational size on accident rates.

Formulate arguments for improving workplace safety and health.

Describe components of effective health prevention programs.

Recognize controversial approaches to controlling occupational diseases.

---

Definitions:

Long-Term Credit Sales

Sales made on credit with repayment terms extending beyond the standard period, typically over a year or more.

Profitable Credit Sales

Sales made on credit that generate a profit for the company, after accounting for the cost of goods sold and other expenses related to the sale.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal, used in accounting to determine the value of an asset in the balance sheet.

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, hence the loss has not been realized.