Which Inventory Costing Method Provides the Most Realistic Measure of Net

question 14

Multiple Choice

Which inventory costing method provides the most realistic measure of net income?

• A)FIFO
• B)LIFO
• C)average cost
• D)specific identification

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Definitions:

Transfer Payments

Payments made by governments to individuals without any expectation of a direct return or exchange, such as welfare benefits or social security.

Government Spending

Expenditures made by the government in any given period, including on services, salaries, and infrastructure projects.

Economic Role

The functions and responsibilities that different entities (individuals, firms, governments) play in the economy.

Government

The governing body of a nation, state, or community which makes and enforces laws, policies, and regulations.