Which Inventory Costing Method Results in the Highest Inventory Balance

question 163

Multiple Choice

Which inventory costing method results in the highest inventory balance during a period of rising prices?

• A)Weighted average cost
• B)LIFO
• C)FIFO
• D)Both FIFO and LIFO result in the same inventory balance

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Definitions:

Readily Available

Something that is easily obtainable or accessible without significant effort or obstruction.

Value Rationality

A decision-making process focused on achieving a specific goal in a consistent, logical manner, irrespective of the personal utility gained.

Traditional Action

A term often associated with Max Weber, referring to actions motivated by established habits or customs rather than rational calculations or ethical considerations.

Means-ends Rationality

A concept in sociology that refers to people's actions being directed towards achieving specific goals by the most efficient means.