When Costs to Purchase Inventory Regularly Decline, Which Method of Inventory

question 35

Multiple Choice

When costs to purchase inventory regularly decline, which method of inventory costing will yield the lowest gross profit and income?

• A) Gross margin.
• B) Weighted average.
• C) Specific identification.
• D) FIFO.
• E) LIFO.

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Definitions:

Brain Drain

The tendency for talented people from developing countries to become educated in a developed country and remain there after graduation.

Developing Countries

are nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) compared to more developed countries.

Malnutrition

A condition that results from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.