One of the Newest and Increasingly Questionable Practices in the World

question 59

Short Answer

One of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR) is the notion of making operations "_____" in such a way as to offset whatever damage is being done to the environment through greenhouse gas emissions by purchasing credits to balance out emissions.

---

Definitions:

Inventory Valuation

A method used to calculate the cost of goods sold and the end inventory balance, involving techniques such as FIFO, LIFO, and weighted average cost.

Consignor

A person or company that sends goods to a consignee to be sold or returned, retaining ownership until sale.

Consignee

The party to whom goods are shipped and held in trust until they are sold, at which point payment is made to the consignor.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of the company in selling its products.