Which of the Following Variations of the Retail Inventory Method

question 65

Multiple Choice

Which of the following variations of the retail inventory method would generally result in the lowest cost-to-retail ratio in a period of rising prices?

• A)FIFO
• B)LIFO
• C)average cost
• D)lower of average cost or market

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Definitions:

Dividend

Money dispensed by a corporation to its owners/shareholders, generally from the company's earnings.

Investment Income

Income coming from interest payments, dividends, capital gains, and other profits made through an investment.

Associated Companies

Companies that are connected through common ownership or control but aren't subsidiaries or fully owned entities of the parent company.

Equity Method

An accounting technique used by companies to record and report their investments in other companies based on the level of control and influence they have over the company.