Acceptable Methods of Assigning Specific Costs to Inventory and Cost

question 147

Multiple Choice

Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except:

• A) LIFO method.
• B) Retail method.
• C) Specific identification method.
• D) Weighted average method.
• E) FIFO method.

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Definitions:

Transactional Activity

Transactional Activity refers to the routine, day-to-day operations and transactions within an organization, such as payroll processing and record-keeping.

Human Capital

The value of an individual’s competencies and capabilities, which is considered an asset to an organization’s performance and efficiency.

Human Resources Management

The strategic approach to the effective and efficient management of people in an organization to help their business gain a competitive advantage.

Personnel Department

The division within an organization tasked with managing employee-related functions, including recruitment, training, and benefits administration.