Which of the Following Statements Is Incorrect

question 37

Multiple Choice

Which of the following statements is incorrect?

• A)A year-end purchase of inventory increases the LIFO cost of goods sold when unit costs are increasing.
• B)A year-end purchase of inventory increases the FIFO ending inventory when unit costs are increasing.
• C)The choice of an inventory costing method is dependent on the actual flow of goods when inventory is sold.
• D)A year-end purchase of inventory does not affect the weighted-average ending inventory when unit costs are increasing.

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Definitions:

Advertising

Paid nonpersonal communication usually targeted at large numbers of potential buyers.

Direct Mail

A marketing strategy involving the sending of advertisements or promotional materials directly to potential customers via postal mail.

Sales Communication

The process of exchanging information and messages between a seller and potential or existing customers to facilitate the selling process.

Potential Buyers

Individuals or organizations that are considered likely or prospective customers for a product or service.