A Student Would Like to Buy a Crossover SUV from a Local

question 131

Multiple Choice

A student would like to buy a crossover SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation because

• A) two or more parties have unsatisfied needs.
• B) there is no desire on the part of either party to satisfy its needs.
• C) one of the involved parties does not have the ability to satisfy its needs.
• D) there is no way for each party to communicate with one another.
• E) there has been no assessment of consumer wants and needs.

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Definitions:

FIFO Cost

First In, First Out cost method, an inventory valuation method where the goods first purchased or produced are the first to be sold, affecting the value of inventory on hand and cost of goods sold.

Periodic Inventory

An inventory system where a company physically counts its inventory at specific intervals to determine the cost of goods sold and ending inventory levels.

Inventory Balance

The total value of a company's inventory, including raw materials, work-in-progress, and finished goods at any given time.

LIFO Reserve Disclosure

LIFO reserve disclosure is the reporting of the difference between the inventory cost under LIFO (Last In, First Out) and FIFO (First In, First Out) accounting methods.