In Which of These Inventory Approaches Is It Important to Determine

question 8

Multiple Choice

In which of these inventory approaches is it important to determine the actual cost of a particular inventory item being sold in order to determine cost of goods sold?

• A)LIFO.
• B)FIFO.
• C)Specific identification.
• D)Weighted average cost.

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Definitions:

Manager

An individual responsible for planning, organizing, leading, and controlling resources to achieve specific organizational goals.

Strike

The direction of a horizontal line on an inclined surface.

Dip

The angle that a layer or structural surface makes with the horizontal, measured perpendicular to the strike.

Fault

A crack in the Earth's crust resulting from the movement of rock on either side of the crack, which can lead to earthquakes.