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:

Accompanying Figure

A visual representation (such as an image, chart, or diagram) that is provided along with text to illustrate or explain content.

Sequential Search

A search method that checks every element in a list or array one by one until the desired element is found or the list ends.

Key Comparisons

In algorithms or data structures, these are critical operations where values are compared to achieve sorting or to check for duplicates.

Binary Search

Binary search is an efficient algorithm for finding an item from a sorted list of items by repeatedly dividing the search interval in half.