Which of the Following Is Not an Acceptable Method of Determining

question 14

Multiple Choice

Which of the following is not an acceptable method of determining inventory cost under GAAP?

• A)FIFO.
• B)LIFO.
• C)Average cost.
• D)All of the choices are acceptable.

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Definitions:

Capital

Refers to financial assets or the financial value of assets, such as cash and goods, used in a business to generate wealth through investment or production.

Substitution Effect

The change in consumption patterns due to a price change that makes one good more economically attractive than its alternatives.

Output Effect

Output Effect is the impact on total production or output when a firm adjusts its resources, such as labor or capital, in response to changes in market conditions.

Substitute Resource

A resource or product that can be used in place of another to fulfill a similar function or need.