During a Period of Steadily Falling Prices, Which Inventory Cost

question 115

Multiple Choice

During a period of steadily falling prices, which inventory cost flow assumption results in reporting the lowest net income?

• A) Specific identification
• B) Average cost
• C) Weighted-average
• D) FIFO
• E) Retail method

---

Definitions:

Discriminated

Treated differently or unjustly on the basis of race, age, sex, or other attributes, often resulting in disadvantage or exclusion.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.

Biases

Prejudices or inclinations that affect judgment, causing partiality or favoritism in decision-making, often leading to unfair outcomes.

Prejudice

A preconceived opinion or bias against a person or group that is not based on reason or actual experience, often leading to discriminatory behavior.