Compare the Effects of the Different Costing Methods on the Financial

question 59

Multiple Choice

Compare the effects of the different costing methods on the financial statements
-In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

• A) FIFO
• B) Perpetual
• C) Average cost
• D) Periodic
• E) Any method, as constant costs have no effect on net income or taxes for the period

---

Definitions:

Adjusting

The process of adapting or changing one’s behavior, thoughts, or attitudes to better suit new conditions or environments.

Cope

The process of effectively dealing with something difficult or distressing, often involving adapting to circumstances or making adjustments.

Attitude

A settled way of thinking or feeling about something, often reflected in a person's behavior.

Employers

Organizations or individuals that hire employees to perform specific tasks in exchange for compensation.