Which Costing Method Tends to Level Out the Effects of Cost

question 102

Multiple Choice

Which costing method tends to level out the effects of cost increases or decreases?

• A)Specific identification
• B)FIFO
• C)Average-cost
• D)LIFO

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Definitions:

Rings Passing

A condition in an engine when the piston rings do not properly seal, allowing oil or fuel to pass into the combustion chamber.

Audible Air Leak

A situation where air is escaping from a pneumatic system, such as brakes or suspension, identified by a sound indicating a potential malfunction.

Out Of Service (OOS)

A status indicating that a device, vehicle, or system is not operational, either due to malfunction or maintenance requirements.

Slack Adjuster

A component in a vehicle's braking system that adjusts the brakes as needed to compensate for wear and maintain performance.