The LIFO Method of Inventory Valuation Bases the Cost of Goods

question 141

Multiple Choice

The LIFO method of inventory valuation bases the cost of goods sold on the cost of

• A) merchandise that has been held in inventory for the longest period of time.
• B) most recent merchandise purchased by the firm.
• C) actual units customers purchased.
• D) merchandise the firm acquired at the lowest cost.

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Definitions:

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin and nervous system.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the linings of the digestive and respiratory systems.

Trichomoniasis

A sexually transmitted infection caused by the parasite Trichomonas vaginalis, resulting in itching, burning, and often a greenish discharge.

Blood-sucking Insects

Insects that feed on the blood of humans or animals, often acting as vectors for various diseases.