Which of the Following Inventory Costing Methods Results in the Lowest

question 138

Multiple Choice

Which of the following inventory costing methods results in the lowest value of ending inventory 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:

Price Weighted Stock Index

An index in the stock market where the impact of each company’s stock on the index is directly proportional to its share price.

Stock Prices

The cost of purchasing a share of a company's stock, determined by supply and demand in the market.

Divisor

A number that divides into another number, typically referred to in the context of indices calculation in finance.

Money Market Investment

Short-term financial instruments with high liquidity, often used for cash management by investors and companies.