If Merchandise Inventory Is Being Valued at Cost and the Price

question 33

Multiple Choice

If merchandise inventory is being valued at cost and the price level is consistently rising, which method of costing will yield the highest inventory?

• A) Average cost
• B) LIFO
• C) FIFO
• D) All methods will generate the same gross profit.

---

Definitions:

Dental Floss Dispenser

A device designed to hold and dispense dental floss, often facilitating ease of use and encouraging better dental hygiene practices.

Secondary Package

The additional outer packing of a product that provides extra protection or information, and may play a role in marketing strategies.

Primary Package

The packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption.

Private-label

Products that are manufactured by one company for sale under another company's brand, typically a retailer's brand.