Which of the Following Inventory Costing Methods Yields the Lowest

question 61

Multiple Choice

Which of the following inventory costing methods yields the lowest net income during a period of rising inventory costs?

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

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Definitions:

Wage Rate

The standard amount of compensation an employee receives for performing a specific task or for working a certain amount of time, typically measured per hour or per unit of work.

Workers

Individuals engaged in any form of work either for wages, salary, or as independent contractors.

Product Price

The amount of money charged for a product or service, which can be influenced by production cost, supply and demand, and market competition.

Resource

An asset or material that can be used to produce goods or services and achieve economic goals.