Which Cost Determination Method Smoothes the Effects of Price Changes

question 48

Multiple Choice

Which cost determination method smoothes the effects of price changes?

• A)Specific identification
• B)FIFO
• C)Average cost
• D)Lower of cost and net realizable value

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Definitions:

Primitive instincts

Basic innate urges or behaviors that are thought to stem from early human history, vital for survival and reproduction.

Freud

Sigmund Freud, an Austrian neurologist known for founding psychoanalytic theory, which proposes that human behavior is influenced by unconscious motivations.

Moral development

The process through which individuals acquire and understand the values, attitudes, and behaviors considered appropriate and ethical within their culture or society.

Margaret Mead

A pioneering anthropologist known for her studies on the roles of culture and socialization in shaping human behavior.