Which Costing Method Cannot Be Used to Determine the Cost

question 108

Multiple Choice

Which costing method cannot be used to determine the cost of inventory items before lower-of-cost-or-net realizable value market is applied?

• A) Specific identification
• B) FIFO
• C) Average-cost
• D) All of these methods can be used.

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Financial Ratios

Quantitative measures derived from financial statement analysis used by investors and analysts to evaluate a company's financial health and performance.

P/E Ratio

The price-to-earnings (P/E) ratio is a valuation measure comparing the current share price of a company to its per-share earnings.

Market/Book Ratio

A financial ratio comparing a company's current market price to its book value, used to evaluate whether a stock is over or undervalued.