Blake Company Purchased Two Identical Inventory Items

question 55

Multiple Choice

Blake Company purchased two identical inventory items.The item purchased first cost $16.00,and the item purchased second cost $18.00.Blake sold one of the items for $24.00.Which of the following statements is true?

• A)Ending inventory will be lower if Blake uses the weighted-average rather than the FIFO inventory cost flow method.
• B)Cost of goods sold will be higher if Blake uses the FIFO rather than the weighted-average inventory cost flow method.
• C)The dollar amount assigned to ending inventory will be the same no matter which inventory cost flow method is used.
• D)Gross margin will be higher if Blake uses LIFO rather than the FIFO inventory cost flow method.

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Definitions:

Legitimate Power

The authority or power that is recognized and accepted by others as right and proper due to the position or role of the person holding it.

Referent Power

A form of influence based on the leader's personal traits and the respect and admiration they inspire in others.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Stress

The emotional or physical strain experienced as a response to challenging or demanding situations, which can impact decision-making and performance.