Which of the Following Inventory Costing Methods Yields the Highest

question 103

Multiple Choice

Which of the following inventory costing methods yields the highest gross profit 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:

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the information and connecting it to other knowledge the person has, to better retain the information.

Tip-Of-The-Tongue Effect

A cognitive phenomenon where a person cannot fully retrieve a word or name but has a partial recall or feels that retrieval is imminent.

Encoding Failure

The inability to recall specific information because it was not encoded into memory effectively.

Acoustic Storage

The part of memory that holds audio information for a brief period following hearing it.