Which of the Following Inventory Costing Methods Is Based on the Actual

question 124

Multiple Choice

Which of the following inventory costing methods is based on the actual cost of each particular unit of inventory?

• A) Specific-unit-cost
• B) Average-cost
• C) Last-In, First-Out
• D) First-In, First-Out

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Definitions:

Compounded Semi-annually

An interest calculation method where interest is added to the principal balance twice a year, affecting the total interest earned or paid.

Retirement Fund

A savings plan or account that is set aside for the purpose of supporting an individual financially during their retirement.

Deferred Annuity

An insurance product that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Compounded Annually

Interest calculation where the interest is added to the principal sum so that the added interest also earns interest from then on, done once a year.