Which Inventory Costing Method Results in the Oldest Costs in Ending

question 139

Multiple Choice

Which inventory costing method results in the oldest costs in ending inventory?

• A)Average cost
• B)Last-In, First-Out
• C)First-In, First-Out
• D)Average-In, First-Out

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Definitions:

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company's balance sheet.

Accrued Liabilities

Financial obligations that a company has incurred but not yet paid for, which are recorded on the balance sheet.

Operating Activities

The day-to-day actions that are involved in running a business, which are recorded in the cash flow from operating activities section of a company's cash flow statement.

Net Cash

The amount of cash available after accounting for all cash inflows and outflows.