Which of the Following Inventory Costing Methods Uses the Cost

question 49

Multiple Choice

Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of goods sold?

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

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Definitions:

Legal Duty

An obligation imposed by law on individuals or entities, requiring them to conform to a standard of conduct for the protection of others against unreasonable risks.

Statute of Limitations

Legislation stipulating the longest period following an occurrence in which legal action can be started.

Legal Claim

is a right to seek a remedy or relief in a legal action due to the infringement of one's legal rights.

Forbearance to Sue

An agreement between a creditor and a debtor in which the creditor agrees not to sue the debtor for a specified period of time.