When the Cost of Purchasing Inventory Is Declining,which Inventory Cost

question 1

Multiple Choice

When the cost of purchasing inventory is declining,which inventory cost flow method will produce the highest amount of cost of goods sold?

• A)Weighted-average
• B)LIFO
• C)FIFO
• D)LIFO,FIFO,and weighted-average will all produce the same amount of cost of goods sold.

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Definitions:

Pseudocoelom

A body cavity between the mesoderm and endoderm; derived from the blastocoel. Compare with coelom.

Echinoderms

Phylum of spiny-skinned marine deuterostome invertebrates characterized by a water vascular system and tube feet; include sea stars, sea urchins, and sea cucumbers.

Segmentation

A body plan in which the body is divided into a series of compartments (segments).

Deuterostomia

Deuterostomia is a major division of the animal kingdom that includes groups like the chordates and echinoderms, characterized by the developmental feature in which the anus forms from the first opening in the embryo, with the mouth forming later.