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:

Merchandise

Products or goods that are bought, sold, or traded within the retail or wholesale market.

Inventory Shrinkage

The loss of products between purchase from supplier and sale to customer, often due to theft, damage, or errors.

Merchandise Inventory

Goods a business intends to sell to customers, held as part of a company's current assets.

Physical Count

The process of manually counting the actual inventory on hand to verify quantities and condition.