Which of the Following Is Not Considered an Acceptable Inventory

question 30

Multiple Choice

Which of the following is not considered an acceptable inventory cost method according to GAAP?

• A)First-in,first-out
• B)First-in,last-out
• C)Last-in,first-out
• D)Average cost

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Definitions:

Covariance

A measure that indicates the extent to which two variables change together, indicating the direction of their linear relationship.

Linear Relationship

A type of relationship between two variables where a change in one variable is associated with a proportional change in the other.

COV

COV refers to the coefficient of variation, a statistical measure of the relative dispersion or variability of a data set relative to its mean, expressed as a percentage.

Covariance

A measure that indicates the extent to which two variables change together; positive covariance indicates that both variables tend to move in the same direction.