Two Companies Report the Same Cost of Goods Available for Sale

question 11

Multiple Choice

Two companies report the same cost of goods available for sale but each employs a different inventory costing method.If the price of goods has increased during the period, then the company using

• A)LIFO will have the highest ending inventory.
• B)FIFO will have the highest cost of goods sold.
• C)FIFO will have the highest ending inventory.
• D)LIFO will have the lowest cost of goods sold.

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Definitions:

Dialogues

Conversations between two or more people as a feature of a book, play, or movie.

Individual Members

Persons belonging to a group or organization, each with unique attributes and contributions, as distinct from collective entities.

Decision-making Meetings

Meetings specifically convened to discuss issues and make choices or determinations about future actions.

Persuade

To persuade an individual to adopt a certain belief or take a specific action by using logic or discussion.