Which of the Following Statements Concerning Cost Formulas in a Periodic

question 170

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 average in a period of rising prices.
• C) When using the average cost formula, a new average cost per unit is calculated after each purchase.
• D) The results under average in a periodic system are not the same as in a perpetual system.

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Definitions:

Microtubules

Cylindrical structures found in the cytoplasm of eukaryotic cells, composed of tubulin proteins, playing key roles in cell shape, division, and intracellular transport.

Peptidoglycan

A large, complex molecule found in the cell walls of bacteria, providing structural support and shape.

Primary Plant Cell Wall

The primary cell wall in plants is a flexible, comparatively thin layer that surrounds the cell membrane of plant cells, providing structure and support.

Bacterial Cell Wall

A rigid or semi-rigid structure that surrounds the plasma membrane of bacteria, providing structural support and protection; primarily composed of peptidoglycan in most bacteria.