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

question 145

Multiple Choice

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

• A)Specific identification
• B)Weighted-average
• C)Last-in, first-out
• D)First-in, first-out

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Definitions:

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods and services.

Purchase Requisition

An official request or document that a company uses to inform the purchasing department of items it needs to order.

Legal Contract

A legally binding agreement between two or more parties that is enforceable by law.

Operations Management System

A framework or methodology designed to plan, control, and improve the processes that produce goods or services.