Absolute Advantage Is Based on Opportunity Cost

question 194

True/False

Absolute advantage is based on opportunity cost.

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Definitions:

Perpetual Inventory System

Definition: An accounting system that continuously updates inventory records for each purchase and sale transaction.

LIFO

Last In, First Out, an accounting method where the most recently produced items are recorded as sold first.

Ending Inventory

The valuation of goods available for sale at the end of an accounting period; part of the calculation of cost of goods sold.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than being updated continuously.