Which Method Assigns the Same Cost to All Units Whether

question 214

Multiple Choice

Which method assigns the same cost to all units whether sold or left in ending inventory?

• A) FIFO
• B) LIFO
• C) Weighted average cost
• D) Specific identification

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Definitions:

Cash Cycle

The duration of time a company takes to convert its inventory and other resource inputs into cash flows from sales.

Inventory Period

The average time it takes for a company to turn its inventory into sales, often used to evaluate the efficiency of inventory management.

Accounts Payable Period

The average number of days it takes for a business to pay off its creditors and suppliers.

Receivables Turnover

A financial metric indicating how quickly a company collects payments from its customers, calculated as sales divided by accounts receivable.