The Weighted Moving Average Method Assigns

question 21

Multiple Choice

The weighted moving average method assigns:

• A) a value in each period being averaged.
• B) a weight greater than 1.
• C) information based on a simple average.
• D) a weight to each previous period.

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently acquired items are recorded as sold first.

Retail Inventory Method

An accounting method used to estimate inventory cost for retail businesses by applying a constant gross margin percentage.

Gross Profit Ratio

A financial metric that measures a company's gross profit as a percentage of its revenues, indicating efficiency in using labor and supplies.

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any cost associated with the sale or disposal of the item.