What Is an Example of Substitute Goods

question 45

Multiple Choice

What is an example of substitute goods

• A)butter and margarine
• B)tennis balls and tennis rackets
• C)motorhomes and tractors
• D)peanut butter and jelly

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Definitions:

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated using the beginning inventory, additions, and subtractions of goods sold.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life.

LIFO

"Last In, First Out", an inventory costing method where the most recently produced or acquired items are recorded as sold first.

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.