Which of the Following Methods of Measuring the Cost of Goods

question 139

Multiple Choice

Which of the following methods of measuring the cost of goods sold most closely parallels the actual physical flow of the merchandise?

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

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Definitions:

Share Split

Traditionally, a corporation’s dividing existing shares into two or more shares, thereby increasing the number of authorized, issued, and outstanding shares and reducing their par value. In modern corporation law, treated like a share dividend. Also called stock split.

Total Fairness Test

A legal standard used to evaluate the overall fairness and equity of a corporate action or decision, especially in mergers and acquisitions.

Straight Voting

A form of voting for directors that ordinarily permits a shareholder to cast a number of votes equal to the number of shares he or she owns for as many nominees as there are directors to be elected. See also cumulative voting.

GATT

The General Agreement on Tariffs and Trade, a legal agreement between many countries aimed at promoting international trade by reducing or eliminating trade barriers such as tariffs or quotas.