Penn Wars Has Decided to Downsize

question 13

Multiple Choice

Penn Wars has decided to downsize.Instead of having the managers tell the employees themselves,they have hired an outside firm.This is an example of

• A)bias suppression.
• B)correctability.
• C)representativeness.
• D)ethicality.
• E)consistency.

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Definitions:

Physical Inventory

A process involving the manual counting of all inventory items in a business at a specific point in time to verify quantities and condition.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, examples include FIFO, LIFO, and weighted-average.

Tax Purposes

The specific reasons or objectives related to the calculation, payment, or management of taxes.

Cost Flow Assumption

Accounting assumptions used to calculate the cost of inventory sold and ending inventory value, such as FIFO, LIFO, or weighted average.