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:

Minerals

Inorganic substances required by the body in small amounts for a variety of functions, including bone formation and enzyme activation.

Saturated Fat

A type of dietary fat found primarily in animal products and certain oils, which, when consumed in high amounts, can contribute to heart disease.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks for cells, muscles, and tissues in the body.

Soluble Fiber

A type of dietary fiber that can dissolve in water, forming a gel-like substance that helps to slow digestion and can have beneficial effects on blood sugar and cholesterol levels.