Which Inventory Costing Method Most Closely Approximates Current Cost for Each

question 44

Multiple Choice

Which inventory costing method most closely approximates current cost for each of the following line items on the financial statements?

• A) \[\begin{array} { | c | c | }
• \hline \text { Ending Inventory } & \text { Cost of Goods Sold } \\
• \hline \text { FIFO } & \text { FIFO } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | }
• \hline \text { Ending Inventory } & \text { Cost of Goods Sold } \\
• \hline \text { LIFO } & \text { LIFO } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { Ending Inventory } & \text { Cost of Goods Sold } \\
• \hline \text { FIFO } & \text { LIFO } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { Ending Inventory } & \text { Cost of Goods Sold } \\
• \hline \text { LIFO } & \text { FIFO } \\
• \hline
• \end{array}\]

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Definitions:

Enantiomers

Molecules that are mirror images of each other but cannot be superimposed, often displaying different behaviors in chiral environments.

Enantiomers

Molecules that are mirror images of each other but cannot be superimposed, possessing identical physical properties except for their effect on polarized light.

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair, derived from ammonia by replacement of one or more hydrogen atoms with organic groups.

Trimethylamine

A nitrogen-containing organic compound characterized by a strong fishy odor, used in the synthesis of various chemical products.