Which of the Following Statements About the Weighted-Average Cost Formula

question 63

Multiple Choice

Which of the following statements about the weighted-average cost formula is true?

• A)If prices are rising,companies prefer it because it lowers their tax liability.
• B)It is the most popular method in Canada.
• C)In times of rising prices,weighted-average will produce a higher net income than FIFO.
• D)In time of rising prices,weighted-average produces an inventory cost per unit that is higher than the cost per unit of cost of goods sold.

---

Definitions:

Respondents

Individuals who answer or respond to a survey, questionnaire, or poll.

First Alcohol

The initial exposure or experimentation with alcohol by an individual.

Mead

A fermented beverage made from honey, water, and sometimes various fruits, grains, spices, or hops.

Spirits

Alcoholic beverages distilled from grains or plants, known for their higher alcohol content compared to beer or wine.