As the Product Idea Committee of Foster Manufacturing Company Went

question 142

Multiple Choice

As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons. Which of the following is least likely to be a reason for rejection?

• A) The company lacked the expertise to develop and market the product.
• B) The product did not match organizational resources.
• C) The product would allow the company to increase its annual sales by 20 percent.
• D) The product was not consistent with the company's objectives.
• E) The company lacked the needed human resources.

---

Definitions:

FIFO

An inventory valuation method which assumes that the first goods purchased or produced are also the first ones sold, also known as "First In, First Out."

Ending Inventory

The worth of products ready for purchase at the close of a financial period.

Cost Flow Assumption

The method used by businesses to value inventory and calculate the cost of goods sold, based on the order in which products are bought or produced.

FIFO

"First In, First Out," an inventory valuation method where the oldest stock is sold first.