Which of the Following Statements About the Computation of Cost

question 54

Multiple Choice

Which of the following statements about the computation of cost of goods sold is true?

• A) Manufacturing and retail businesses must use the specific identification method for tax purposes.
• B) Manufacturing and retail businesses must use the FIFO costing convention for tax purposes.
• C) Manufacturing and retail businesses must use the LIFO costing convention for tax purposes.
• D) Manufacturing and retail businesses that use the LIFO costing convention for tax purposes must also use LIFO for book purposes.

---

Definitions:

Financial Footing

A term that describes the financial stability or health of an individual, organization, or country.

Political Campaigns

Organized efforts by political candidates or parties to influence the decision of voters in elections, often involving public speaking, advertising, and other forms of outreach.

Paid Professionals

Individuals who are compensated for their expertise and specialized skills in a particular field.

Volunteers

Individuals who offer their time and services willingly without financial compensation to support a cause or organization.