In an Environment in Which Demand Is Both Substantial and Stable

question 124

Multiple Choice

In an environment in which demand is both substantial and stable, _____ technology tends to be the best choice.

• A)batch production
• B)fixed automation
• C)project production
• D)programmable automation
• E)flexible automation

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Definitions:

Periodic System

An accounting system where inventory is updated at specific periods rather than continuously, typically used for calculating cost of goods sold at the end of an accounting period.

Ending Inventory

The aggregate value of products available for purchase at the conclusion of a financial period.

LIFO Method

Last In, First Out method; an inventory valuation technique where the latest items added to inventory are the first ones removed during sales.

FIFO

"First In, First Out," an inventory valuation method where the earliest items purchased are the first to be sold.