In Times of Inflation,which Cost Flow Assumption Provides the Highest

question 16

Multiple Choice

In times of inflation,which cost flow assumption provides the highest inventory asset?

• A) FIFO
• B) Moving weighted average
• C) LIFO
• D) It depends on the rate of inflation

---

Definitions:

Set of Data

A collection of related values, measurements, or observations.

Mean

An arithmetic mean, found by adding all the values in a series and then dividing by the quantity of values in that series.

Frequency Distribution

This is a tabulation of the occurrences of each unique value in a dataset, often visualized in histograms or bar charts.

Mean

The average of a set of numbers, calculated by adding them together and then dividing by the number of values.