The Managers of Tong Company Receive Performance Bonuses Based on the Profit

question 36

Multiple Choice

The managers of Tong Company receive performance bonuses based on the profit of the firm. Which cost formula are they likely to favour in periods of declining prices?

• A) estimating inventory method
• B) weighted Average
• C) FIFO
• D) physical inventory method

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Definitions:

Parasitic Infestation

The presence and growth of parasites on or within a host organism, causing harm to the host.

Macrophages

A type of white blood cell within tissues that engulfs and digests cellular debris, foreign substances, microbes, and cancer cells.

Dendritic Cells

A set of immune cells present in many tissues that capture antigens and present them to T cells.

Anemia

a condition in which there is a deficiency of red cells or hemoglobin in the blood, resulting in pallor and weariness.