The Index Number Used in Trend Analysis Is Computed by Dividing

question 34

True/False

The index number used in trend analysis is computed by dividing the base year amount by the index year amount,and multiplying that result by 100.

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones sold.

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

FIFO

First-In, First-Out, an inventory valuation method where goods first bought are the first to be sold, assuming that the oldest inventory items are sold before newer ones.

Costs

The amount of money expended or resources used in the production of goods or in providing services.