Which of the Following Inventory Costing Methods Yields the Highest

question 133

Multiple Choice

Which of the following inventory costing methods yields the highest Gross profit when costs are rising during the accounting period?

• A)Specific- unit- cost
• B)Last- In, First- Out
• C)Average- cost
• D)First- In, First- Out

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Definitions:

Motor Vehicles

Wheeled vehicles that are motorized or mechanically propelled, used for transportation of people, goods, or both.

Household Electricity

Electrical power supplied to homes, used for operating appliances, lighting, and other domestic purposes.

Elastic

In economics, it describes a situation where the supply or demand for a good or service changes significantly when its price changes. High elasticity indicates that a slight price change could lead to a significant change in quantity demanded or supplied.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a percentage, to compare changes in quantities or measures.