An MNC's Parent or Subsidiary in Need for Funds Commonly

question 16

True/False

An MNC's parent or subsidiary in need for funds commonly determines whether there are any available internal funds before searching for outside funding.

---

Definitions:

Inventory Amount

refers to the total cost or market value of all the goods and materials a company has in stock at a given time.

LIFO

"Last In, First Out," a method of inventory valuation where the most recently produced or acquired items are the first to be expensed.

Average Inventory

The mean value of a company's inventory over a specified period, often used to calculate turnover rates and efficiency in managing stock levels.

Gross Profit Method

A method of estimating inventory cost that is based on the relationship of gross profit to sales.