Which of the Following Inventory Costing Methods Will Always Result

question 50

Multiple Choice

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used?

• A) FIFO and LIFO
• B) LIFO and weighted-average cost
• C) Specific identification and FIFO
• D) FIFO and weighted-average cost
• E) LIFO and specific identification

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Definitions:

Tax Expense

The amount of money that a company owes in taxes based on its net income, adhering to the tax laws of the jurisdictions in which it operates.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health of a company's core activities.

Net Operating Income

The total profit of a company after operating expenses but before deducting interest and taxes.

Residual Income

Income that continues to be generated after the initial effort has been expended, often used in the context of investments or intellectual property.