If All Things Are Equal Except One Company Uses Weighted

question 37

Multiple Choice

If all things are equal except one company uses weighted average cost during inflation and the other uses FIFO then:

• A) The weighted average cost company will have a higher inventory turnover.
• B) The FIFO company will have a higher inventory turnover.
• C) The two companies will have the same inventory turnover.
• D) Inventory valuation methods do not effect inventory turnover calculations.

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