If Companies Have Identical Inventoriable Costs but Use Different Inventory

question 7

Multiple Choice

If companies have identical inventoriable costs but use different inventory flow assumptions when the price of goods have not been constant then the

• A) cost of goods sold of the companies will be identical.
• B) cost of goods available for sale of the companies will be identical.
• C) ending inventory of the companies will be identical.
• D) net income of the companies will be identical.

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Definitions:

Employees

Individuals who are hired by a company or another person to perform work in exchange for compensation.

Legal Obligation

A duty bound by law which requires an individual or organization to follow a certain course of action or refrain from certain acts.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in dealings with their employer.

Dues-paying Union Members

Workers who contribute financially to a union in exchange for membership and representation.