Which Inventory Costing Method Would Not Be Appropriate for a Manufacturer

question 93

Multiple Choice

Which inventory costing method would not be appropriate for a manufacturer using a perpetual inventory system?

• A) First-in, first-out
• B) Last-in, first-out
• C) Average cost
• D) Dollar-value LIFO

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Definitions:

Household Income

The combined gross income of all members of a household, encompassing wages, salaries, benefits, and other income sources before taxes.

Dividends

Payments made by a corporation to its shareholder members, usually derived from company profits.

Services

Intangible products provided to consumers, such as healthcare, education, banking, and entertainment, which do not result in the ownership of any physical goods.

Basic Resources

The fundamental inputs used for production, including land, labor, capital, and entrepreneurship.