Which of the Following Inventory Costing Methods Yields the Lowest

question 2

Multiple Choice

Which of the following inventory costing methods yields the lowest ending inventory 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

---

Definitions:

FCFS

"First Come, First Served," a principle of service priority in which requests are processed in the order that they are received.

Arrival Rate

In queue theory, it refers to the average number of units (e.g., people, objects, or data packets) arriving at a system or facility per time unit.

Service Rate

The speed at which a system can process or handle service requests, often used in the context of queueing theory.

Arrival Rate

The frequency at which entities arrive at a certain point or system, typically measured over a specific period of time.