When Supermarkets and Other Retailers Use Scanners That Provide Instant

question 11

Multiple Choice

When supermarkets and other retailers use scanners that provide instant inventory information, they are adopting ________ changes.

• A) technological
• B) people
• C) financial
• D) structural

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Definitions:

Inventory Valuation

The method used to calculate the cost of goods sold and ending inventory, such as FIFO, LIFO, or weighted average cost.

Casualty

An unexpected or sudden event causing loss or damage, often used in insurance to refer to accidents or mishaps causing physical harm or property damage.

Retail Basis

A method of inventory accounting where inventory is valued at retail prices, then converted to a cost basis using a predetermined cost-to-retail ratio.

Lower of Average Cost

A method to value inventory at the lower of its historical average cost or the market cost, ensuring a conservative asset valuation.