All of the Following Correctly Describe the Average Cost Inventory

question 97

Multiple Choice

All of the following correctly describe the average cost inventory cost flow method except:

• A) A moving average cost is used with a perpetual inventory system only.
• B) The average cost methods are based on the view that the cost of inventory on hand and the cost of goods sold during a period should be representative of all purchase costs available for the period.
• C) A weighted-average unit cost is used with a periodic inventory system only.
• D) A moving average cost is used with either a periodic or a perpetual inventory system.

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Definitions:

Inferences

The process of drawing conclusions about a population's parameters based on a sample's statistics.

Conclusions

Final judgments or decisions derived after the completion of a process, experiment, or analysis.

Simple Random Sample

A sample in which each member of the population has an equal chance of being selected.

Equal Chance

A condition in probability where every outcome in a sample space is equally likely to occur.