Two Companies Report the Same Cost of Goods Available for Sale

question 36

Multiple Choice

Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using

• A) LIFO will have the highest ending inventory.
• B) FIFO will have the highest cost of good sold.
• C) FIFO will have the highest ending inventory.
• D) LIFO will have the lowest cost of goods sold.

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Definitions:

Leadership Behaviour

The actions and attitudes exhibited by individuals in leadership positions that influence the direction, performance, and culture of an organization.

House's Path-Goal Theory

A leadership theory that suggests leaders can affect the performance, satisfaction, and motivation of their followers by offering appropriate rewards for achieving goals.

Environmental Factors

Aspects of the surrounding environment, both natural and built, that can affect living organisms and systems.

Leader Power

The ability of a leader to influence or command thought, opinion, or behavior within an organization or group.