In a Period of Declining Prices, Which of the Following

question 17

Multiple Choice

In a period of declining prices, which of the following inventory cost formulas generally results in the lowest inventory figure on the statement of financial position?

• A)average cost
• B)FIFO
• C)The figure would be the same under both FIFO and average cost.
• D)Need more information to answer.

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Definitions:

IT Activities

Tasks and operations related to the management, processing, and use of information technology in supporting business operations.

Public Cloud

A computing service model where resources, such as servers and storage, are owned and operated by a third-party provider and delivered over the internet, making them available to the general public.

Google Drive

A cloud-based storage service provided by Google that allows users to save files online and access them from any smartphone, tablet, or computer.

Customer Manages

In a business context, it refers to situations where customers have control over certain decisions or aspects of service provision.