Name the method of inventory accounting in which the oldest remaining items are assumed to have been first sold ?
Correct answer: A. FIFO (first in first out)
- A. FIFO (first in first out)
- B. LAFO (last in first out)
- C. First come First serve
- D. None of these
Explanation
FIFO assumes that the earliest inventory purchased is sold first, leaving the newest purchases in closing stock. LAFO is not the standard inventory-accounting abbreviation or method listed here.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
What is called the minimum price of a commodity that is fixed by government in order to save the interests of producer of raw materials ?
What does mean by Franchise__________________?
The amount that is paid for carriage of goods by chips, railways, airways etc is called ?
Endorsement means anything written upon the back of the document What does means by Endorse ?
Different workers or group of workers separate the production works and trade into__________processes. What this separation is called?
What does mean by Deed________________?