Choose the Statement Which Is Correct

question 3

Multiple Choice

Choose the statement which is correct. Assume that inventory prices are rising.

• A)The LIFO method gives the highest closing inventory figure in the statement of financial position.
• B)The FIFO method gives the highest closing inventory figure in the statement of financial position.
• C)The FIFO method gives the lowest closing inventory figure in the statement of financial position.
• D)The LIFO method gives the lowest figure for cost of sales.

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Definitions:

Unit Price

The cost assigned to a single unit of a product or service.

Cookies Per Box

A measure indicating the number of cookies contained in a single box, commonly used to indicate quantity in packaging.

List Cars

List cars might refer to the process or listing where various cars are catalogued, often for the purpose of sale, review, or compilation in a database.

Cost Price

The amount of money spent to produce a good or service, excluding any markup for profit.