Which Inventory Costing Method Generally Results in the Most Recent

question 125

Multiple Choice

Which inventory costing method generally results in the most recent costs being assigned to ending inventory?

• A)LIFO.
• B)FIFO.
• C)Weighted average cost.
• D)Simple average cost.

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Definitions:

Precautions

Actions taken in advance to prevent potential undesirable outcomes or to minimize risks.

Moral Hazard

A situation where one party in a transaction has the opportunity to assume additional risks that negatively affect the other party because they do not bear the full consequences of their actions.

Contract Changes

Modifications or adjustments made to the terms, conditions, obligations, or rights within a contract between parties.

Behavior

The actions or reactions of an entity, often in response to its environment.