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.

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Definitions:

Neurotransmitter

Chemical substances in the brain that transmit signals from one neuron to another, influencing various functions such as mood, sleep, and cognition.

Hormone

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Dopamine

A neurotransmitter in the brain that is involved in pleasure, motivation, and reward mechanisms.

Adrenalin

A hormone and neurotransmitter, also known as epinephrine, that increases heart rate, muscle strength, blood pressure, and sugar metabolism, usually in response to stress or excitement.