Which of the Following Statements About the Computation of Cost

question 54

Multiple Choice

Which of the following statements about the computation of cost of goods sold is true?

• A) Manufacturing and retail businesses must use the specific identification method for tax purposes.
• B) Manufacturing and retail businesses must use the FIFO costing convention for tax purposes.
• C) Manufacturing and retail businesses must use the LIFO costing convention for tax purposes.
• D) Manufacturing and retail businesses that use the LIFO costing convention for tax purposes must also use LIFO for book purposes.

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Definitions:

Papillae

Small, nipple-like structures on the tongue's surface that contain taste buds and aid in the sense of taste.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, which are responsible for detecting and transmitting tastes to the brain.

Gingivitis

A common and mild form of gum disease (periodontal disease) that causes irritation, redness, and swelling (inflammation) of the gingiva, the part of the gum around the base of the teeth.

Frenulum

Fold extending from the floor of the mouth to the midline of the undersurface of the tongue.