Possible Reasons for a Business Estimating the Value of the Ending

question 13

Multiple Choice

Possible reasons for a business estimating the value of the ending inventory should NOT include:

• A)the inventory is destroyed by fire.
• B)the business uses periodic system and needs to prepare interim financial statements.
• C)the business uses perpetual system so a physical inventory is never needed.
• D)All of the above are valid reasons for estimating inventory.

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Definitions:

Nominal Group Technique

A structured decision-making process that allows individuals to contribute ideas independently before collectively discussing and ranking the suggestions.

Electronic Brainstorming

A method of generating ideas using technology, allowing for simultaneous input from participants in different locations.

Production Blocking

A phenomenon where the flow of ideas or productivity is hindered or obstructed, often occurring in group settings during brainstorming or collaborative efforts.

Social Entity

Refers to any organization or group that is formed by individuals who share common goals, interests, or identities, ranging from small groups to large institutions.