A Company That Installs a Sprinkler System in Its Corrugated

question 84

Multiple Choice

A company that installs a sprinkler system in its corrugated box factory is using a risk ________ strategy.

• A)avoidance
• B)reduction
• C)anticipation
• D)transfer

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Definitions:

Ending Inventory

The value or quantity of goods available for sale at the end of an accounting period, calculated to determine the cost of goods sold.

Fire Screens

Protective devices placed in front of fireplaces to prevent sparks and embers from escaping into the room.

Average Cost Method

An inventory costing method where the cost of goods sold and ending inventory is determined based on the average cost of all similar items in inventory.

Ending Inventory

The aggregate worth of a corporation's goods, raw materials, and both completed and in-progress items that remain unsold at the conclusion of a financial period.