Under Which of the Following Inventory Costing Methods Is the Ending

question 147

Multiple Choice

Under which of the following inventory costing methods is the ending inventory valued on the cost of the most recent purchases?

• A)specific identification
• B)weighted-average
• C)last-in,first-out
• D)first-in,first-out

---

Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts, or financial statements, is represented as a proportion of the total account.

Net Income

The amount by which revenues exceed expenses.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Profitability Ratios

Financial metrics used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity.