Companies Are Not Allowed to Report Inventory Costs by Assuming

question 161

True/False

Companies are not allowed to report inventory costs by assuming which units of inventory are sold and which units still remain on hand.Companies can assume which inventory units are sold and still remain on hand using a variety of methods (FIFO,LIFO,and weighted-average cost).

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Definitions:

Gains in Productivity

refer to increases in the efficiency of production processes, resulting in more output per unit of input over time.

Technology

Business application of knowledge based on scientific discoveries, inventions, and innovations.

U.S. Productivity

measures the efficiency of production in the United States, typically gauged by the output of goods and services per unit of labor input.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.