When Prices Are Constant, Which of the Following Inventory Cost

question 71

Multiple Choice

When prices are constant, which of the following inventory cost formulas will lead to the lowest cost of goods sold figure?

• A) FIFO
• B) Specific Identification
• C) Average
• D) When prices are constant, all cost determination methods will yield the same cost of goods sold figure.

---

Definitions:

Xerox

A multinational corporation known for its significant contributions to the document technology and digital print industry.

Document Outsourcing

The practice of hiring third-party vendors to manage document creation, management, and distribution needs of an organization.

Anne Mulcahy

Known for her role as the former CEO of Xerox Corporation, where she led significant turnaround efforts and innovation.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.