Which of the Following Inventory Costing Methods Uses the Cost

question 132

Multiple Choice

Which of the following inventory costing methods uses the cost of the oldest purchases to calculate the cost of goods sold?

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

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Definitions:

Marginal Product

The additional output resulting from using one more unit of a particular input, holding all other inputs constant.

Unit of Labor

A measure of labor input, often referred to as one hour of work by an employee or worker.

Marginal Product

The additional output resulting from the use of one more unit of a production input.

Total Product

The total output of goods or services produced by a firm over a given period of time.