Which of the Following Inventory Costing Methods Requires the Calculation

question 133

Multiple Choice

Which of the following inventory costing methods requires the calculation of a new average cost after each purchase?

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

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Definitions:

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much variation there is from the average.

Standard Deviations

An indicator of how widely values in a dataset are spread out from the average, showing the degree to which these numbers vary from their mean.

Nominal Data

A classification of categorical variables that do not have a natural order or rank.

Interval Data

A type of quantitative data that involves measurements where the difference between two values is meaningful, but there is no true zero point.