Under Which of the Following Inventory Costing Methods Is Ending

question 117

Multiple Choice

Under which of the following inventory costing methods is ending inventory based on the cost of the most recent purchases?

• A) Specific-unit-cost
• B) Average-cost
• C) Last-In, First-Out
• D) First-In, First-Out

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Definitions:

Federal Income Tax

A financial obligation placed by the US federal government on the annual incomes of individuals, corporations, trusts, and different legal organizations.

Disposable Income

Discretionary financial resources available to households for spending and saving after tax.

Consumption

The consumption of products and services by families, which adds to the total demand within the economic system.

45-Degree Line

In economics, a graphical representation where all points on the line represent where the value of the goods and services produced equals total spending.