The Two Most Widely Used Methods for Determining the Cost

question 46

Multiple Choice

The two most widely used methods for determining the cost of inventory are

• A) FIFO and LIFO
• B) FIFO and average
• C) LIFO and average
• D) gross profit and average

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Definitions:

Price Elastic

The degree to which the demand for a product changes in response to a change in its price.

Price Inelastic

Characterizes a situation where the demand for a good or service does not significantly change with a change in its price.

Price Volatile

Refers to sudden and significant price changes within short periods, often seen in markets for commodities or securities.

Marketing Mix

The factors that a business can change in selling products to customers—product, place, price, and promotion.