Match the Inventory Valuation Method from the List Below That

question 95

Essay

Match the inventory valuation method from the list below that is being described in each situation in letters a-e.In all cases,assume a period of rising prices.
$$\begin{array} { | l | l | } \hline \text { FIFO } & \text { First in, first out } \\\hline \text { LIFO } & \text { Last in, first out } \\\hline \text { WA } & \text { Weighted average } \\\hline \text { SI } & \text { Specific identification } \\\hline\end{array}$$
________ a.The method that is used if each inventory item can be matched with a specific purchase and invoice.
________ b.The method that will cause the company to have the lowest income taxes.
________ c.The method that will cause the company to have the lowest cost of goods sold.
________ d.The method that will assign a value to inventory that approximates current cost.
________ e.The method that will tend to smooth out erratic changes in costs.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Loud Noise

High-decibel sounds that can range from slightly uncomfortable to harmful for the ears, potentially leading to temporary or permanent hearing damage.

Behaviorism

A school of psychology that focuses on observable behaviors and the ways in which they're learned or conditioned rather than on internal processes like emotions and thoughts.

Cognitive Processes

Mental activities involved in acquiring, processing, and storing knowledge.