Which of the Following Inventory Costing Methods Yields the Lowest

question 19

Multiple Choice

Which of the following inventory costing methods yields the lowest net income during a period of rising inventory costs?

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

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Definitions:

Credit Balance

Indicates the amounts credited on the right side of the balance sheet, usually representing liabilities, revenue, or equity.

T Account

A graphical representation of a ledger account, used in accounting to depict debits and credits for a specific account.

Debit Side

refers to the left-hand side of a ledger account that records increases in assets, expenses, and decreases in liabilities and equity.

Credit Side

The right side of an account in double-entry bookkeeping, typically used to record increases in liabilities, revenue, or equity.