Which of the Following Statements Is/are True

question 112

Multiple Choice

Which of the following statements is/are true?

• A)Valuing inventory under LIFO may produce different results depending on whether a perpetual or periodic inventory system is used.
• B)Valuing inventory under the weighted average cost method always produces the same results using either a perpetual or periodic inventory system.
• C)Valuing inventory under FIFO may produce different results depending on whether a perpetual or periodic inventory system is used.
• D)All of the answers are true.

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Definitions:

Quantity Supplied

The measure of goods or services that producers intend and are able to put on the market at a chosen price for a specified duration.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers.

Effective Price Ceiling

An effective price ceiling is a government-imposed limit on the price that can be charged for a product or service, set below the market equilibrium, leading to shortages.

Equilibrium Price

The price point at which the market's supplied and demanded goods quantities meet.