Which of the Following Is True of Consumers of an Organization

question 62

Multiple Choice

Which of the following is true of consumers of an organization?

• A)The retail outlets which sell the products of an organization are considered the consumers of that organization.
• B)The consumers of an organization receive inputs and produce outputs for other customers the organization.
• C)The consumers of an organization are a part of one of the various departments or processes of the organization.
• D)The consumers of an organization are the ultimate purchasers and users of the organization's products.

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Definitions:

Income Tax Expense

The total amount of income tax that a company reports as an expense in its financial statements for a specific period.

Pretax Income

The total earnings of a company before taxes have been deducted, also known as earnings before tax (EBT).

LIFO Method

"Last In, First Out" method; an inventory strategy where the most recently produced items are sold first, leaving older inventory in stock.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."