Which Inventory Costing Method Would NOT Be Appropriate for a Manufacturer

question 112

Multiple Choice

Which inventory costing method would NOT be appropriate for a manufacturer using a perpetual inventory system?

• A) First-in,first-out
• B) Last-in,first-out
• C) Average cost
• D) Dollar-value LIFO

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Definitions:

Aggregate Expenditure

The total amount spent on national-level goods and services in an economy.

Disposable Income

Income available to households after accounting for taxes and social security charges, available for spending or saving.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a specific time period.

Aggregate Expenditure

This is the total spending on final goods and services in an economy, including consumption, investment, government purchases, and net exports.