Ethical Constraints Arise from Applicable Laws on Labor Practices, Environmental

question 3

True/False

Ethical constraints arise from applicable laws on labor practices, environmental issues, fair trade, consumer rights, and so forth.

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Definitions:

FIFO

First-In, First-Out, an inventory method where the oldest items in stock are sold first.

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or purchased items are sold first, used for cost of goods sold calculation.

Pretax Income

The amount of income earned by a business before taxes have been deducted.

Ending Inventory

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