Which of the Following Is Not a Guideline When Choosing

question 5

Multiple Choice

Which of the following is not a guideline when choosing between whether to use FIFO or the average cost method?

• A)Use the same cost formula for all inventories of a similar nature and use.
• B)Select the cost formula that best matches costs and revenues.
• C)Report an inventory cost on the statement of financial position that is close to the inventory's recent cost.
• D)Choose a cost formula that corresponds as closely as possible to the physical flow of goods.

---

Definitions:

Cage

An enclosure made of wires or bars designed to hold animals or birds.

Sick

A state of not being in good health or suffering from an illness.

Schedule-induced Behavior

Behavior that occurs at a higher frequency due to the introduction of a schedule of reinforcement or punishment.

Reinforcements

Stimuli or outcomes that strengthen the probability of a behavior's occurrence, either by presenting a positive stimulus or removing a negative one.