Which of the Following Should Not Be Taken into Account

question 31

Multiple Choice

Which of the following should not be taken into account in decision-making?

• A) Risk
• B) Ethical considerations
• C) Irrelevant costs
• D) Opportunity costs

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Gross Profit Method

A method of estimating the amount of ending inventory by applying the gross profit percentage to sales.

Inventory Shortage

The situation where the actual inventory on hand is less than what is recorded in the accounting records.

Inventory Count

The physical verification of the quantities and condition of items held in inventory, typically conducted periodically.