In Most Situations, the Simplest, Easiest, and Most Cost-Effective Way

question 4

Multiple Choice

In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to

• A)purchase it.
• B)develop it internally.
• C)license it for a fee.
• D)develop it through research partnerships.
• E)purchase the owner of the technology.

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Definitions:

Perpetual Inventory Account

An accounting method that records inventory purchases and sales in real time, providing a continuously updated inventory balance.

FIFO

"First In, First Out", an inventory valuation method where the costs of the oldest inventory items are the first to be recognized in determining cost of goods sold.

LIFO

"Last In, First Out," an inventory valuation method where the last items added to inventory are the first ones to be used or sold.

Lower-Of-Cost

An accounting method that values inventory at the lower of its historical cost or current market value.