Farouk,Ltd

question 1

Multiple Choice

Farouk,Ltd.,employs Ghali.In the system of law applied in Middle Eastern countries,Farouk can be held liable for an act of Ghali under

• A)no legal theory.
• B)the codification of Islamic law in the sharia.
• C)the strict belief of individual responsibility.
• D)the doctrine of respondeat superior.

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Definitions:

Inventory

Items kept on hand by a company for the purpose of production or sale, encompassing raw materials, work-in-progress, and finished goods.

Moving-average Cost Method

An inventory valuation method that averages the costs of inventory over a period to calculate the cost of goods sold and ending inventory valuation.

Average-cost Method

The average-cost method is an inventory costing method that assigns an average cost to each item in inventory, used to determine the cost of goods sold and ending inventory values.

Weighted-average Cost Method

This inventory costing method assigns a weighted average cost to each unit in inventory, used to calculate cost of goods sold and ending inventory.