Suppose a Good Can Be Produced Using Commonly Available Resources

question 237

Multiple Choice

Suppose a good can be produced using commonly available resources.The elasticity of supply is

• A) negative.
• B) greater than zero but less than 1.
• C) greater than 1.
• D) zero.
• E) More information is needed to make a determination about the size of the elasticity of supply.

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Definitions:

Periodic Inventory System

A method of inventory valuation where inventory counts and cost of goods sold calculations are made periodically at the end of a reporting period, instead of after each sale.

Cost Flow Assumptions

Accounting principles that dictate how the cost of goods sold and ending inventory values are calculated, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

LIFO

"Last In, First Out" - an inventory valuation method where the most recently produced or purchased items are recorded as sold first.

FIFO

"First-In, First-Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.