A Professor at a University Finds a Way to Reduce

question 51

Multiple Choice

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

• A)the method to reduce costs of producing automobile glass,and the formula for the substance that prevents smudging
• B)the method to reduce costs of producing automobile glass,but not the formula for the substance that prevents smudging
• C)the formula for the substance that prevents smudging,but not the method to reduce costs of producing automobile glass
• D)neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudging

---

Definitions:

Inventory Balance

The total value of a company's inventory at the end of an accounting period, including raw materials, work-in-progress, and finished goods.

Inventory Turnover Distortion

A situation where the calculated rate of inventory turnover does not accurately reflect a business's actual efficiency in managing inventory.

LIFO Liquidation

The process of selling older inventory that was valued under the Last-In, First-Out method, which can affect taxation and financial reporting.

LIFO Reserve

An accounting method that records the difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and another inventory valuation method, often FIFO.