Two Companies Report the Same Cost of Goods Available for Sale

question 72

Multiple Choice

Two companies report the same cost of goods available for sale but each employs a different inventory cost formula.If the price of goods has increased during the period, then the company using

• A)FIFO will report lower ending inventory.
• B)Average cost will report lower ending inventory.
• C)FIFO will report higher cost of goods sold.
• D)Average cost will report lower cost of goods sold.

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Definitions:

Relaxation Techniques

Various practices designed to alleviate stress and anxiety, induce calm, and promote physical and mental well-being, such as deep breathing, meditation, and yoga.

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The process of recognizing, interpreting, and making sense of sensory information.

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An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

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A disorder related to eating, marked by periods of excessive food consumption followed by unsuitable weight management techniques, like self-induced vomiting or intense physical activity.