Threats

question 36

Multiple Choice

Threats:

• A)Come only from the broad environment
• B)Typically cannot be overcome
• C)Can stand in the way of organizational competitiveness and stakeholder satisfaction
• D)Are generally the result of moving too slowly against competitors
• E)None of these

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Definitions:

Replacement Cost

The cost to replace an asset with another of similar kind and quality at current prices, often considered in insurance assessment and accounting.

LIFO Liquidations

Occurs when a company using the Last-In, First-Out inventory method sells off older inventory items, potentially resulting in a lower cost of goods sold and higher profit.

Accounting Treatment

Refers to the method of applying accounting principles and rules to transactions and financial events in a company’s financial statements.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are the first to be expensed.