In a Period of Falling Prices,the Inventory Costing Method That

question 74

Multiple Choice

In a period of falling prices,the inventory costing method that will cause the company to have the lowest cost of goods sold is:

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

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Definitions:

Shares Outstanding

The overall quantity of a corporation's stock shares presently held by all stockholders, encompassing those owned by institutional investors in block form and restricted shares possessed by the company's insiders and officers.

Stock Price

The expense involved in buying a company's stock in the financial market.

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring how effectively those assets are being used to generate earnings.

Earning Per Share

A financial metric that represents a portion of a company's profit allocated to each outstanding share of common stock, showing a company's profitability per share.