Identify the Inventory Valuation Method Below That Cannot Be Calculated

question 49

Multiple Choice

Identify the inventory valuation method below that cannot be calculated in a database created using an REA modeling approach.

• A)LIFO.
• B)FIFO.
• C)Weighted Average.
• D)none of the above

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Definitions:

Standard Costs

Predetermined costs assigned to goods and services, used as targets for performance evaluation.

Actual Costs

The real costs incurred in the production of goods or provision of services, as opposed to estimated or standard costs.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to control labor costs.