During a Period of Increasing Cost Prices, Which Inventory Costing

question 148

Multiple Choice

During a period of increasing cost prices, which inventory costing method will yield the lowest cost of goods sold?

• A)Any method in which the company uses a periodic inventory system
• B)FIFO
• C)LIFO
• D)Weighted Average Cost

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Definitions:

Rigidity

The lack of flexibility or adaptability in processes, systems, or organizations that can hinder responsiveness and innovation.

Flexibility

The ability of a system, process, or entity to adapt to changes or demands without significant detriment or loss of functionality.

Consolidate Manufacturing

The process of centralizing or combining the production operations and facilities to improve efficiency and reduce costs.

Flexible Technology

Systems or equipment that can easily adapt to changes in production volume, design, or process, enhancing a company's ability to respond to market changes.