______ Method Results in a Straight Line That Minimizes the Sum

question 20

Multiple Choice

______ method results in a straight line that minimizes the sum of the squares of the differences between the line and each of the actual observations.

• A)Best-fit
• B)Straight-line
• C)Least-squares
• D)Linear-line

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Definitions:

FIFO

An inventory valuation method (First In, First Out) where the oldest inventory items are recorded as sold first.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in inventory valuation and grading.

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lower of its historical cost or market value, to comply with the conservatism principle.

Inventory Valuation

The method of assigning a monetary value to items in inventory, critical for cost of goods sold calculation and financial reporting.