Which of the Following Statements Concerning Cost Formulas in a Periodic

question 4

Multiple Choice

Which of the following statements concerning cost formulas in a periodic inventory system is INCORRECT?

• A) The results under FIFO in a periodic system are the same as in a perpetual system.
• B) The cost of goods sold would be lower using FIFO than weighted average in a period of rising prices.
• C) When using the weighted average cost formula, a new weighted average cost per unit is calculated after each purchase.
• D) The results under weighted average in a periodic system are not the same as in a perpetual system.

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Definitions:

Low-Cost Provider Strategy

A competitive strategy focusing on producing goods or services at the lowest cost compared to competitors to attract price-sensitive customers.

Differentiation Strategy

A business approach in which a company seeks to distinguish its products or services from competitors through unique features.

Strategic Planning

The process of defining a company's strategy or direction and making decisions on allocating resources to pursue this strategy, including its capital and people.

Competitive Advantage

A condition that enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with.