Which Inventory Costing Method Results in the Highest Inventory Balance

question 231

Multiple Choice

Which inventory costing method results in the highest inventory balance during a period of rising purchase prices?

• A)weighted average cost
• B)FIFO
• C)LIFO
• D)Both FIFO and LIFO result in the same inventory balance.

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Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by the government, after allowances, exemptions, and deductions.

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Withholding allowance refers to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.

Taxable Income

The portion of an individual's or entity's income used to determine tax liability.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides retirement, disability, and survivor benefits.