Two Companies Report the Same Cost of Goods Available for Sale

question 65

Multiple Choice

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

• A) FIFO will report lower ending inventory.
• B) average cost will report lower ending inventory.
• C) FIFO will report higher cost of goods sold.
• D) average cost will report lower cost of goods sold.

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Definitions:

French Horn

A brass musical instrument known for its distinctively wide bell and complex coiled tubing, played by blowing into a mouthpiece.

Subjective Properties

Characteristics or aspects of an object or experience that are dependent on individual perceptions and feelings, rather than being objectively measurable.

Music

An art form and cultural activity that involves the creation of melodies, rhythms, and sometimes lyrics, to produce compositions that can be performed or listened to.

Timbre

The quality of a musical note or sound that distinguishes different types of sound production, such as voices or musical instruments.