Which of the Following Statements About the FIFO Cost Formula

question 15

Multiple Choice

Which of the following statements about the FIFO cost formula is true?

• A)The same costs per unit are assigned to the ending inventory and the cost of goods sold.
• B)Companies prefer to use FIFO because it lowers their tax liability.
• C)In times of rising prices FIFO will produce a higher net income than weighted-average.
• D)In time of rising prices FIFO produces an inventory cost per unit that is lower than the cost per unit of cost of goods sold.

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Definitions:

Door-To-Door

A direct selling method where salespeople visit potential customers at their homes to sell products or services.

Sales Presentation Method

Strategies and techniques used by salespeople to introduce and pitch their product or service to potential buyers effectively.

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In a discussion, dominating a conversation means taking control or occupying most of the talking time, often at the expense of others' participation.