An Overall Management Objective Is To

question 80

Multiple Choice

An overall management objective is to:

• A)minimize the number of sales transactions
• B)minimize the total amount of accounts receivable
• C)minimize the time from the beginning of the selling process to the end of cash collections
• D)maximize the amount of float

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Definitions:

LIFO Periodic

An inventory valuation method, Last In First Out, used in periodic inventory systems where the last items added to the inventory are assumed to be sold first.

Perpetual LIFO

Perpetual LIFO, or Last-In, First-Out, is an inventory accounting method continuously updating inventory and costs of goods sold by assuming the last items purchased are the first to be sold.

Ending Inventory

The worth of products ready for purchase at the conclusion of a financial period.

Cost Flow Assumption

A method adopted by businesses to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).