The Inventory Costing Method That Reports the Most Current Prices

question 162

Multiple Choice

The inventory costing method that reports the most current prices in ending inventory is

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

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Definitions:

Units

Basic quantities or measures adopted to quantify and represent variables in quantitative analyses, such as units of measurement in physics or economic units in economics.

Profit-Maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.

Loss-Minimizing

A strategy aimed at reducing the negative impact or minimizing the losses in a business operation or an investment.

Quantity

The amount or number of a material or immaterial good or service.