Which of the Following Inventory Costing Methods Yields the Highest

question 101

Multiple Choice

Which of the following inventory costing methods yields the highest ending inventory when costs are rising during the accounting period?

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

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Definitions:

Inverse Demand Curve

A graph illustrating the relationship between price and quantity demanded, showing price on the Y-axis and quantity on the X-axis, essentially reversing the axes of a standard demand curve.

Marginal Costs

The increase in the full cost incurred by generating an additional unit of a product or service.

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus.

Total Profits

The total income of a business after subtracting total expenses from total revenue, showing the final earning.