The Choice of Inventory Valuation Method Can Help Achieve Each

question 11

Multiple Choice

The choice of inventory valuation method can help achieve each of the following independent goals,except:

• A)Reduce cost of merchandise acquired from suppliers.
• B)Increase reported net income.
• C)Increase the inventory turnover rate.
• D)Reduce the amount of income taxes owed.

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Definitions:

Law

Rules devised and applied by institutions of society or the government to modulate behavior.

Legally Sufficient Value

An acceptable form or measure of value that must be provided in a contract to make it binding and enforceable under law.

Consideration

Something of value (such as money, goods, services, or promised actions) that is exchanged between parties in a contractual agreement.

Adequacy

Adequacy refers to the suitability of something to meet the needs in its context or the sufficiency in quantity or quality to fulfill a specific requirement.