Economic Models Deal with

question 95

Multiple Choice

Economic models deal with

• A)people's behaviour in responding to scarcity.
• B)how people think about making choices.
• C)group opinions.
• D)the reasons people give for donating to charity.

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Definitions:

FIFO Cost

A cost flow assumption for inventory valuation where the first items purchased are the first ones to be used or sold.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by calculating a cost-to-retail percentage and applying it to the retail price.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Gross Profit Method

An inventory costing method that estimates the cost of goods sold and ending inventory based on the gross profit margin.