The Relationship of Dead Capital to Inefficient Production Is

question 212

Multiple Choice

The relationship of dead capital to inefficient production is

• A) without clear ownership it is not possible to sell or transfer a resource so that it can be used efficiently.
• B) that outdated equipment will lead to inefficient production.
• C) nonexistent since the capital is already dead.
• D) that when the dead capital is replaced by more technologically advanced capital, economic growth occurs.

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Definitions:

FIFO

First-In, First-Out, an accounting method for managing inventory and financial matters where the oldest inventory items are sold or used first.

Inventory Costing

A method used to assign costs to inventory items and determine the cost of goods sold during a period.

Purchase Order

A document issued by a buyer to a seller, specifying the types of products, quantities, and agreed prices for products or services the seller will provide to the buyer.

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.