Diversified Public Corporations Such as Berkshire Hathaway and Virgin Group

question 100

Multiple Choice

Diversified public corporations such as Berkshire Hathaway and Virgin Group are examples of companies that create value using

• A) deconstruction expertise.
• B) parenting expertise.
• C) excess personnel.
• D) increased market positioning.

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Definitions:

Beginning inventory

This is the value of all the inventory (raw materials, work-in-process, and finished goods) that a company has at the start of an accounting period.

LIFO

An inventory valuation method that assumes the last items placed into inventory are the first ones sold; stands for Last In, First Out.

Cost

A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.

Ending merchandise inventory

The final value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.