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

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Definitions:

Occasional Drinker

A person who consumes alcoholic beverages infrequently or in moderation.

Tax-Supported School Systems

Public education systems funded primarily through taxation, providing free or subsidized schooling to children in the community.

Liberia

A country in West Africa known for being founded by freed American and Caribbean slaves in the 19th century.