Match Each Definition with the Correct Term Below

question 132

Multiple Choice

Match each definition with the correct term below.
-LIFO Liquidation

• A)An inventory management system in which the Internet is used to order and track goods.
• B)A method of valuing inventory that assumes that costs of the first items acquired should be assigned to the first items sold.
• C)A method of estimating inventory that uses the ratio of cost to retail price.
• D)Merchandise that its owner places on the premises of another company with the understanding that payment will be made only when the merchandise is sold.
• E)An inventory management system in which goods arrive just at the time they are needed.
• F)when sales have reduced inventories below the levels set in prior years.
• G)A method of estimating inventory that assumes the gross margin for a business remains relatively stable from year to year.
• H)The association of costs with their assumed flow in the operations of a company.
• I)A method of valuing inventory that assumes that the costs of the last items purchased should be assigned to the first items sold.
• J)A method of valuing inventory that identifies the cost of each item in ending inventory.

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Definitions:

Association

In statistics, it refers to any relationship or correlation between two or more variables.

Null Hypothesis

A default statement in statistics that there is no significant effect or no difference, usually set as the assertion to be tested.

Chi-Square Test

A statistical test used to determine if a significant difference exists between the expected frequencies and the observed frequencies in one or more categories.

Independence

The state of being free from outside control or influence; in statistics, it refers to the scenario where the occurrence of one event does not affect the probability of another.