In the Basket of Goods That Is Used to Compute

question 72

Multiple Choice

In the basket of goods that is used to compute the consumer price index,which of the following categories of consumer spending is the largest?

• A)education & communication
• B)food & beverages
• C)medical care
• D)recreation

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Definitions:

FIFO

"First In, First Out," an inventory valuation method assuming that the first items purchased are the first ones sold, affecting the cost of goods sold and ending inventory value.

Specific Identification

An accounting method used for inventory costing, where each item in inventory is identified and its cost is individually recorded.

LIFO

"Last In, First Out," a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Average Cost

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.