In a Period of Rising Prices the Costs Allocated to Ending

question 68

Multiple Choice

In a period of rising prices the costs allocated to ending inventory may be understated in the

• A) average-cost method.
• B) FIFO method.
• C) gross profit method.
• D) LIFO method.

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Definitions:

National Defense Education Act

1958 law passed in reaction to America’s perceived inferiority in the space race; encouraged education in science and modern languages through student loans, university research grants, and aid to public schools.

Agricultural

Pertaining to farming or the cultivation of plants and animals to produce food, fiber, medicinal plants, and other products.

Industrial

Pertaining to the production of goods in factories through the use of machinery and labor.

Consumer Sectors

Divisions within an economy that consist of businesses and industries which produce goods and services specifically for personal and household consumption.