Discrepancies of Assortment Happen When

question 395

Multiple Choice

Discrepancies of assortment happen when

• A) producers prefer to produce and sell in large numbers, but consumers prefer to buy and consume in smaller numbers.
• B) consumers may not want to consume goods and services at the time producers would prefer to produce them.
• C) consumers value goods and services in terms of costs and competitive prices whereas producers value them in terms of satisfying needs and ability to pay.
• D) producers specialize in producing a narrow range of goods and services but consumers need a wide variety.
• E) producers hold title to goods and services that they themselves do not want to consume.

---

Definitions:

LIFO Method

An inventory valuation method that assumes the last items placed in inventory are the first ones sold; LIFO stands for Last-In, First-Out.

FIFO Method

First In, First Out, an inventory valuation method that assumes that the first items placed into inventory are the first sold.

Ending Inventory

The total value of goods that remain unsold at the end of the accounting period.

Holding Gains

Profits resulting from the increase in value of an asset held over time, not realized until the asset is sold.