Which Inventory Cost Flow Assumption Generally Results in the Highest

question 100

Multiple Choice

Which inventory cost flow assumption generally results in the highest reported amount for cost of goods sold when inventory costs are falling?

• A)FIFO.
• B)LIFO.
• C)Weighted-average cost.
• D)Straight-line.

---

Definitions:

Price Discrimination

Charging different prices to different buyers for products of like grade and quality.

Market Segments

Sub-groups of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities such as needs, wants, or interests.

Market Size

Market Size is the total volume or value of sales that a particular market reaches or is expected to reach within a specified period.

Cost-effectiveness

Evaluating the efficiency of an investment or expense based on the cost relative to the benefits or outcomes achieved.