Which of the Following Is an Inventory Valuation Method

question 15

Multiple Choice

Which of the following is an inventory valuation method?

• A)First-in,first-out
• B)Average-cost
• C)Lower-of-cost-or-market
• D)Perpetual

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Definitions:

Direct Method

An approach to allocate service department costs directly to producing departments without reciprocal services considered.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are subtracted.

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Direct Method

A financial accounting method that allocates service department costs directly to producing departments without intermediate allocations.