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.

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