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.

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Definitions:

Reasoning

The mental process of deriving conclusions, judgments, or inferences from facts or premises, often involving logical thought.

Feeling

An emotional state or reaction to stimuli, often subjective and not always based on fact.

Behaving

Acting in a manner according to certain standards, rules, or expectations in social contexts.

Heteronomous Morality

The first stage of moral development in Piaget’s theory, occurring from 4 to 7 years of age. Justice and rules are conceived of as unchangeable properties of the world, beyond the control of people.