In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the FIFO method.
A period of rising prices is known as an inflationary period. In an inflationary period, the prices of goods and services increase.
There are three inventory methods:
- FIFO method: The first in, first out (FIFO) method assumes that the inventories purchases first are sold first and ending inventory is made up of the goods bought last.
- LIFO method: The last-in, first-out (LIFO) method assumes that the latest purchased inventories are the first to be sold and ending inventory consists of goods purchased first.
- The average cost method: this method makes use of the weighted average cost to determine the value of goods sold and ending inventory.
The balance sheet records ending inventory. In periods of rising prices, the FIFO method would result in inventory value closest to the current cost in the balance sheet.
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Rule of thumb methods use two factors to determine the communication budget. These factors are prior sales and communication activities. These methods have several limitations but they are also easy to implement.
What are prior-sales activities?
- These activities are also called the pre-sales activities and they are the ones which are performed before any product is sold to the customer.
- These activities include product research, market research, analysis of data and customer proposals etc…
- communication activities mainly include training the salesperson in a way that he can easily persuade the customer and explain the product content nicely.
- These activities can be of verbal and non-verbal kind. Example: sales pitch, e-mails, calls etc.
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Answer:
The correct answer is: The functional manager.
Explanation:
A weak matrix project management structure is the type of business organization managed by two executives: the functional manager and the project manager. Both of them work jointly and report to each other accordingly. Out of the two of them, the <em>functional manager </em>is in charge of controlling how work is done within the firm.