The Inventory Costing Method That Considers the Ending Inventory to Be

question 87

Multiple Choice

The inventory costing method that considers the ending inventory to be composed of units of the merchandise acquired earliest is called:

• A) first-in, first-out.
• B) highest-in, first-out.
• C) lowest-in, first-out.
• D) last-in, first-out.

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Definitions:

Authorized Representative

An individual or entity legally empowered to act on behalf of another person or organization.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the capacity to enter into contracts and loans, sue and be sued.

Partnership

A business structure where two or more individuals share ownership, as well as the profits and liabilities of the business.

Alternate Payees

Individuals or entities designated to receive payments on behalf of the original payee, often seen in legal settlements or divorce decrees involving support payments.