Which of the Following Inventory Costing Methods Yields the Lowest

question 119

Multiple Choice

Which of the following inventory costing methods yields the lowest cost of goods sold when costs are rising during the accounting period?

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

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Definitions:

Population Mean

The average value of a given characteristic across the entire population.

Probability Distribution

A mathematical description of a random phenomenon in terms of the probabilities of various possible outcomes.

Sample Size

The number of observations or data points collected in a sample from a population.

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to measure the accuracy of an estimate.