XYZ Inc Uses the Average Cost Formula in a Perpetual Inventory

question 100

Multiple Choice

XYZ Inc. uses the average cost formula in a perpetual inventory system. Use the following
information for the month of June for questions . (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.)
-If XYZ Inc. was using the FIFO cost formula instead of average, gross profit from the June 8 sale would be

• A)higher.
• B)lower.
• C)the same.
• D)cannot be determined.

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Definitions:

Communication Openness

The degree to which communication in an organization is freely and effectively exchanged across different levels, encouraging transparency and collaboration.

Interpersonal Communication

The exchange of information, feelings, and meanings between two or more people through verbal and non-verbal methods.

Merit Raise

A salary increase awarded to an employee based on their job performance, recognizing the individual's contributions and achievements.

Cost of Living Adjustment

A change in salaries or benefits to match changes in the consumer price index, ensuring purchasing power is maintained despite inflation.