Which One of the Following Inventory Methods Is Often Impractical

question 63

Multiple Choice

Which one of the following inventory methods is often impractical to use?

• A)Specific identification
• B)Average cost
• C)FIFO
• D)All of the above are practical to use

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Definitions:

Increase Liabilities

The process or action that results in a higher amount of obligations or debts owed by an entity to others.

Decrease Net Income

Refers to a reduction in the net earnings as reported on an entity's income statement, influenced by costs, expenses, or losses.

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash transactions occur.

Wages Expense

The total cost incurred by a company for the salaries or wages of its employees.