Which Is the Most Accurate Statement

question 111

Multiple Choice

Which is the most accurate statement?

• A)In order to have full production,there must be full employment.
• B)In order to have full employment,there must be full production.
• C)Both statements are accurate.
• D)Neither statement is accurate.

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Definitions:

FIFO

First-In, First-Out, an inventory method where the oldest items in stock are sold first.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or purchased items are sold first, used for cost of goods sold calculation.

Pretax Income

The amount of income earned by a business before taxes have been deducted.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.