Which of the Following Inventory Costing Methods Yields the Lowest

question 51

Multiple Choice

Which of the following inventory costing methods yields the lowest 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:

Standard Deviation

A measure of variability that represents the average amount by which individual scores in a distribution vary from the mean.

Variance

A measure of variability that represents the mean of all squared deviation scores.

Nominal

Scale used to classify or categorize data into groups that have different names but are not related to each other in any other systematic way.

Scale of Measurement

The method or standard used to quantify the variables researchers are interested in, such as nominal, ordinal, interval, and ratio scales.